Archives: Media Releases

We are pleased to announce that the AADA Board has elected David Blackhall as the Australian Automotive Dealer Association’s new Chairman, commencing his duties as an independent director following the AADA Annual General Meeting this afternoon.

David has excellent industry experience through a long and successful career in the automotive industry. As the former CEO of the AADA (2016-2019), David also has extensive experience in working with the Government and industry. During his time as the AADA CEO, he made some significant gains for the AADA and its members. Since 2019, David has continued to provide valuable support to the AADA and its members as an independent consultant, supporting the AADA in its fight for better automotive franchising regulations.

Separately, the AADA is also welcoming two new Directors to its Board. Edwina Gilbert, Executive Chair of the Phil Gilbert Motor Group, will be joining the Board as a Director for New South Wales and David Reynolds, Managing Director of the Steinborner Automotive Group, will be joining as the Director for South Australia. Both Edwina and David have extensive experience in the automotive industry and have served on the Australian Motor Dealer Council. Their appointment will take effect immediately, following approval at the AGM today.

Finally, we would like to acknowledge outgoing Chairman Terry Keating for his leadership and guidance over the past six years. Terry has played a significant role in making AADA the peak Dealer body in Australia, recognised by Dealers, other industry bodies, regulators, and the Government. Terry was instrumental in convincing the Dealer councils to commit to an adequate level of funding for the AADA. He has presided over several major achievements, including the hard-fought reforms to automotive franchising laws and the reversal of plans to allow for parallel imports of new vehicles to name a few.

Terry’s time as Chair comes on the back of a lifetime of service to the automotive industry including roles as the President of MTA-NSW, a director of the MTAA, Chair of the Ford National Dealer Council and Chairman of the BMW National Dealer Council.

Terry has chaired his final Board meeting today and the industry will formally honour him in person at the AADA Chairman’s Dinner in March 2022.

 

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The AADA welcomes the Morrison Government’s future fuels and vehicle strategy. The strategy announced today by the Prime Minister encourages consumer choice and will expand Australia’s EV charging infrastructure.

“Consumers are buying hybrids, EVs and PHEVs from their Dealers in record numbers and it is good to see a strategy which responds to this phenomenon by increasing the charging network and considering implications for the electricity grid,” said AADA CEO James Voortman.

“Australia is a huge continent and range anxiety is still a big issue for people considering the purchase of an EV. Bolstering the charging network will give consumers more confidence that an EV can satisfy their needs and will supercharge EV sales,” said Mr Voortman.

The Government will provide $250 million in funding which is expected to grow to more than $500 million when combined with additional contributions from the private and public sectors. The Government expects that by 2030 sales of EV and PHEV vehicles will be 30% of the passenger and light commercial market.

The strategy also outlines the need for collaboration between The Federal and state governments.

“It is vital that the Federal Government takes a leadership role on EVs. Currently, we have state and territory governments across the country developing their own unique EV policies. It is in the interest of motorists, the industry and the country for us to have a consistent approach,” he said.

While the Government ruled out subsidies, the AADA has urged the Government to look at existing taxes which apply to fuel efficient cars. “Taxes such as the Luxury Car Tax and the Passenger Vehicle Tariff continue to drive up the cost of many EVs in the Australian Market”.

Mr Voortman continued, “It’s time we reviewed and modernised the tax and duties that apply to all vehicles so that in future we have strategies that work together, are less complex and will deliver the consumer and environmental benefits that we all know lie ahead.”

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Due to ongoing COVID-19 restrictions, the Australian Automotive Dealer Association (AADA) has decided to reschedule the “2021 Future Focused” Convention & Expo to 8-9 March 2022.

The COVID-19 pandemic has played havoc with every aspect of life and made it impossible to make plans reliably. The AADA Dealer Convention and Expo has certainly been no exception, but we are hopeful, that by March 2022 restrictions will have eased enough to allow freedom of movement in Australia.

Whilst our planning for the AADA Convention & Expo provides for virtual attendance, our commitment is to deliver a fully engaged on-site event. Feedback from our Dealer membership and Allied partners indicates clearly that this is their wish also.

Today, our industry faces many challenges on key policy and business fronts. We believe that the true strength and appeal of the AADA Convention & Expo is that it brings Dealers and allied industry partners together, in the flesh to listen, discuss and debate solutions and strategies which will drive our industry forward.

It is our belief that the rescheduled dates provide us the necessary time to minimise future risk and ensure that our industry can get together at a great event in March 2022.

Event Details

AADA Convention & Expo

Dates:               Tuesday 8 March & Wednesday 9 March 2022

Venue:              Brisbane Convention & Exhibition Centre

Website:           www.aadaconvention.com.au

 

Contact:

Patrick Tessier OAM

M: Patrick@aadaconvention.com.au

P: 0412 685 857

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The peak body representing franchised new car Dealers applauds the release of proposed legislation to expand unfair contract term (UCT) protections.

After extensive consultation, the Government released an Exposure Draft Bill which, among other changes, increases the eligibility threshold for the protections from businesses employing less than 20 employees to those employing less than 100 employees.

“This is another step forward for Australia’s new car Dealers and if this proposal becomes law, many Dealer Groups in rural and regional areas as well as stand-alone franchises will benefit from these protections,” said AADA CEO James Voortman.

“Allowing more Dealers to benefit from UCT protections will hopefully see changes to Dealer Agreements which currently often contain terms which are heavily skewed in favour of their car Manufacturer franchisors,” he said.

“We hope that these changes together with recent changes made to Australia’s automotive franchising regime and the protections that already exist for Dealers in New South Wales will see fairer Dealer Agreements start to become the norm,” Mr Voortman said.

“The AADA will continue to pursue the extension of these protections to all franchised new car Dealers due to disparity in size between Dealers and the large car Manufacturers to which they are franchised,” he said.

“Australian car Dealers desperately want strong and respectful relationships with their Manufacturers characterised by agreements which are fair and reasonable,” he said.

“We would like to thank the Assistant Treasurer Michael Sukkar for driving these reforms. It is also important to thank ACCC Chairman Rod Sims, who has consistently advocated for these protections to be extended,” Mr Voortman said.

“These changes will empower Dealers to continue employing Australians, investing in Australia, supporting Australian communities and paying their taxes in Australia,” he said.

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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.

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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.

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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.

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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.

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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.

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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.

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