Archives: Media Releases

The peak body representing Australia’s new car Dealers has welcomed the release of the Morrison Government’s discussion paper on Automotive Franchising reforms.

The paper will specifically investigate the merits of a stand-alone code, options for mandatory binding arbitration and the need to extend existing protections to other automotive franchisees.

“The release of this discussion paper marks another significant step in reforming the imbalances that exist between Dealers and some Manufacturers. We believe this provides an opportunity for our industry to come together and build on the progress that has been made towards a fair and reasonable set of rules that govern relations between Dealers and Manufacturers,” AADA CEO James Voortman said.

“The consideration of options for compulsory binding arbitration is such an important element of this process given the experience of Holden Dealers in their dispute with General Motors. The prospect of a drawn out and costly legal battle resulted in most Holden Dealers accepting inadequate compensation packages,” he said.

“Even the request by the then Minister Michaelia Cash for General Motors to attend arbitration was flat out refused by the Detroit-based Manufacturer,” he said.

“You need only look at the Holden and Honda Dealers who are currently involved in protracted court battles with their franchisors to understand why the current system favours larger multinational corporations over Australian businesses,” Mr Voortman said.

The paper also flags extending the automotive franchising regulations which have been put in place over the past year to cover other categories of vehicle Dealers, such as truck Dealers and Motorcycle Dealers.

“Many of our members are also truck Dealers and we know they face the same challenges in their franchising relationships, often from the same Manufacturers. The AADA will thus strongly support the extension of these protections to those truck Dealers as well as motorcycle and farm machinery Dealers,” he said.

“We also look forward to working with the Government in considering the merits of a stand-alone Automotive Code relative to the current approach,” he said.

“Car Dealers across Australia are incredibly appreciative of the efforts of the Morrison Government and the work of the Small Business Minister Stuart Robert. All of the reforms that have been progressed to date are fair and will establish an appropriate standard already being set by some of the Australia’s most reasonable Manufacturers,” he said.

Download Media Release

The peak body representing franchised new car Dealers has welcomed the collective bargaining class exemption which is now ready for use.

“This is a welcome and important development for franchised new car Dealers as it provides a much simpler process for them and their representative Dealer Councils to seek permission to collectively bargain with Manufacturers,” AADA CEO James Voortman said.

“We are going through a period of significant change in the automotive industry, and it is more important than ever that Dealers are able to come together and raise their shared concerns with the Manufacturers they are franchised to,” he said

“The collective bargaining exemption comes only two days after the Government released reforms to the Franchising Code of Conduct, including specific protections for automotive Dealers. Together these initiatives will deliver greater fairness for Dealers in their commercial agreements with car Manufacturers,” he said.

“We are delighted that our members can now utilise this exemption through a simplified process giving them the comfort that they are not potentially breaching competition law,” Mr Voortman said.

“This is a welcome initiative from the ACCC which will foster better relations between franchisees and franchisors,” he said.

Download Media Release

The peak body representing franchised new car Dealers has welcomed automotive franchising  reforms which will bring greater fairness to the commercial relations between Australian car Dealers and car Manufacturers.

The new regulations released as part of significant changes to the Franchising Code of Conduct will take effect as of 1 July 2021 and provide Dealers with more certainty in terms of the investment they undertake and the compensation they are entitled too. It will also ensure that new agency models are subject to these rules. Dealers will also benefit from changes to the Franchising Code, including improved disclosure and restriction of franchisors to unilaterally vary agreements.

“These reforms are all about fairness and Australian Dealers will now be in a better position when a car Manufacturer leaves the country, reduces its network or changes its business model,” AADA CEO James Voortman said.

“I congratulate the Morrison Government for standing up for Australian Dealers and implementing these changes. We also look forward to working with the Government on the upcoming consultations on dispute resolution and the merits of a separate automotive code,” he said.

“These changes come after a difficult 18 months for Australian Dealers which saw Detroit-based General Motors terminate every Holden Dealer without adequate compensation. It is clear that other Manufacturers are considering making changes to Dealer networks which is why these reforms are so important,” 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 bring all Manufacturers up to the standard already being employed by ethically-minded car brands operating in Australia,” he said.

“Dealers in regional towns and cities all across the country will be welcoming these reforms. In particular, I need to acknowledge the work of Minister for Small and Family Business Stuart Robert and his predecessor the Attorney General Michaelia Cash,” Mr Voortman 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,” he said.

Download Media Release

The peak body representing franchised new car Dealers has welcomed the Federal Budget’s commitment to securing Australia’s economic recovery.

“Today’s Budget has confirmed a stunning economic recovery for Australia and many of the measures announced will put the automotive industry in a good position to invest in Australia and employ Australians,” AADA CEO James Voortman said.

“This Budget builds on the many measures put in place over the past 12 months which have encouraged business to take the lead in Australia’s economic recovery,” he said.

“Prior to the pandemic the automotive industry had experienced a sustained period of falling sales and recession-like conditions, but we have since been able to get back on our feet and Dealers across Australia are grateful to the Government for empowering business,” Mr Voortman said.

“The extension of the full expensing measure until 30 June 2023 will come as welcome news for many in our industry. This will give businesses including Australia’s more than 3,000 Dealerships the confidence to invest,” he said.

“The significant tax relief provided to many middle- and lower-income Australians is welcome news and will no doubt instil consumers with the confidence to spend,” he said.

“Our industry like many others is experiencing a shortage of skilled staff and the extension of apprenticeship support and JobTrainer will go some way to help us to address those shortages,” Mr Voortman said.

Download Media Release

The Australian Automotive Dealer Association (AADA) welcomes the appointment of Stuart Robert MP as Minister for Employment, Workforce, Skills and Small and Family Business.

“The outgoing Minister, Michaelia Cash, worked closely with the AADA and our Dealer members on the development and introduction of critical reforms which will protect Australian franchised new car Dealers from the predatory behaviour of some Manufacturers,” AADA CEO James Voortman said

“These reforms have only just been announced to the delight of Dealers everywhere and we look forward to working closely with Minister Robert on the detail of the changes and on further work to implement a mandatory and binding arbitration process,” he said.

“The Morrison Government is to be commended for recognising that Dealers are big employers, generous supporters of local communities and important contributors to the economy. We are confident Minister Robert comes with a thorough understanding of the role Dealers play, along with all small and family businesses, as he has first-hand experience setting up and running his own business. We are confident that he will have a strong grasp of the issues effecting Dealers and we look forward to meeting with the Minister to discuss further,” Mr Voortman said.

Download Media Release

Legislation mandating the sharing of automotive service and repair information has been introduced into Parliament today. The new law will require Manufacturers to provide independent repairers with the same information they give to their authorised Dealers.

“We welcome the introduction of this legislation into Parliament and will continue to work with the Government and Industry on the important underlying detail,” AADA CEO James Voortman said.

“Dealers recognise that independent repairers have an important role to play in servicing and repairing the tens of millions of motor vehicles on our roads,” he said.

“This information will be shared on fair and reasonable commercial terms and sensitive information will only be made available to suitably vetted and qualified technicians,” Mr Voortman said.

“Franchised Dealers take great pride in the quality of service they provide to their customers. Dealers make huge investments in factory training of their qualified technicians along with having the latest tools, equipment and facilities,” he said.

“Independent repairers who choose to commit to similar levels investment for their customers and are suitably qualified should be entitled to compete with Dealers on fair and reasonable grounds and this legislation will give them the chance to do that,” Mr Voortman said.

The scheme is due to come into effect on 1 July 2022 and work on the underlying rules will commence soon. The legislations foreshadows the appointment of a scheme administrator who will oversee operations and report back to Government on progress and if necessary, work with the ACCC to enforce scheme rules.

Download Media Release

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

The peak body representing franchised new car Dealers has welcomed the Morrison Government’s landmark reforms to the automotive franchising landscape.

The Government today announced momentous reforms for the automotive industry, which will protect Dealers against the worst abuses by some car companies.

“Today’s announcement will be welcomed by automotive Dealers and their 60,000 employees all across Australia. It will give these local businesses the confidence to employ more Australians, take on more apprentices, invest in their communities and continue to support local sporting teams and charities,” AADA CEO James Voortman 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 bring all Manufacturers up to the standard already being employed by ethically-minded car brands operating in Australia,” he said.

“Mandating the principles for new Dealer agreements, ensuring agency agreements are captured by these regulations and setting appropriate fines for breaches of the Franchising Code are all very welcome measures. Only Manufacturers who ride roughshod over Australian Dealers will have anything to fear from what has been announced today,” Mr Voortman said.

“We also look forward to participating in the further work flagged by the Government on the merits of a stand-alone automotive code, binding arbitration and unfair contract terms,” he said.

“It has been a difficult 12 months for automotive Dealers with General Motors’ termination of 185 Holden Dealers and significant changes flagged by a number of other Manufacturers. The industry is in a state of rapid change and all Dealers ask is that major changes see Manufacturers engage in a fair process and provide adequate compensation,” he said.

“Dealers in regional towns and cities all across the country will be thanking the Morrison Government. In particular we would like to thank the Minister for Small and Family Business Michaelia Cash for sticking up for Australia’s Dealers and working closely with the industry,” Mr Voortman said.

“During the pandemic, the Morrison Government has helped our industry with JobKeeper, support for apprentices and investment incentives. Today’s changes will further enable the industry to take advantage of the recovering economy,” 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,” he said.

Download Media Release

The Australian Automotive Dealer Association (AADA) has welcomed the appointment of Bruce Billson as the new Australian Small Business and Family Enterprise Ombudsman.

Mr Billson has been appointed for a five-year term commencing on 11 March 2021.

“Bruce Billson is a former Commonwealth Small Business Minister and has a good understanding of the challenges facing small and family businesses across Australia,” said AADA CEO James Voortman.

“We are confident that Mr Billson will be a strong advocate for small and family business, including more than 3,000 Dealerships which employ 60,000 people,” he said.

“Mr Billson was instrumental in extending unfair contract term protections to small businesses and we look forward to working with him to ensure these protections are fit for purpose,” said Mr Voortman.

“He has a good understanding of the automotive sector, having played a central role in working with all of the key industry bodies on advancing the sharing of service and repair information,” he said.

“On behalf of all of Australia’s new car Dealers, I would like to thank the outgoing and inaugural Ombudsman, Ms Kate Carnell AO. Ms Carnell did an outstanding job at establishing the Ombudsman’s office and she was incredibly supportive of efforts to address the power imbalance between Dealers and Manufacturers,” said Mr Voortman.

Download Media Release

The Australian Automotive Dealer Association (AADA) is pleased to announce that the AADA 2021 Convention & Expo will return to an on-site event at the Brisbane Exhibition & Convention Centre, on Tuesday 14 & Wednesday 15 September 2021.

Hosted by David Speers, a highly respected journalist and host of “Insiders” on ABC TV, “AADA 2021 Future Focused” will deliver two days of industry perspective on policy and advocacy issues affecting this vital industry.

The convention program will deliver for every corner of the franchised dealership, from the invested Dealer Principal through the Salesperson on the floor. Key industry speakers will present a mix of live and virtual sessions with highly relevant content for the industry. To ensure Dealers and allied industry don’t miss any of the content, the program will also be available online, live and on demand.

“AADA 2021 Future Focused” will also feature a comprehensive Expo for vendors’ products and services. On-site and online, delegates can explore and investigate the latest technology, techniques, products and services to help their business and the industry to focus on a brighter future.

Registrations opening soon. Stay tuned at www.aadaconvention.com.au for regular updates and release of “AADA 2021 Future Focused” schedule.

Further information:

Dates: 14 – 15 September 2021
Venue: Brisbane Convention & Exhibition Centre

Contact:Patrick Tessier OAM
Email: Patrick@aadaconvention.com.au
Mobile: +61 412 685 857