Media Releases Archive - Page 15 of 17

New Car Dealers Welcome Reforms To Automotive Franchising

The peak body representing franchised new car Dealers has welcomed the Morrison Government’s commitment today to make Australia’s new car retailing industry fairer for Dealers and consumers.

“We very much welcome the Government’s commitment to level the playing field between Australian new car Dealers and powerful offshore Manufacturers,” AADA CEO, James Voortman said.

“The existence of a power imbalance has been clearly demonstrated through various inquiries and reviews and today’s announcement that there will be reforms to automotive franchising arrangements is a significant step in the right direction,” said Mr Voortman.

“These reforms will address end-of-term and capital expenditure arrangements, which are key issues that have been raised regularly by our members. We will also be urging the Government to address issues of tenure and consumer law issues,” he said.

“The AADA will be working closely with Ministers Andrews and Cash, the Department of Industry, Innovation, and Science and other industry participants to make sure that the reforms are implemented,” he said.

“The AADA has worked tirelessly to develop broad support for industry-specific protections for franchised new car Dealers and the Minister’s announcement today represents significant progress,” he said.

“Reform in the Automotive retailing sector enjoys the support of the Government, the Opposition, the Small Business and Family Enterprise Ombudsman, the Franchising Council of Australia and most bodies in the Automotive sector,” he said.

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Dealers Welcome Parliamentary Road Safety Committee

The peak body representing Australia’s franchised new car Dealers has welcomed the establishment of Parliament’s Joint Select Committee on Road Safety.

“We support the establishment of this Road Safety Committee and look forward to contributing to its work and enquiries,” said AADA CEO James Voortman.

“New car Dealers play an important role in raising the level of road safety in Australia through the provision of newer, safer cars to Australia’s motoring public,” he said.

“Safer vehicles is one element of the Safe System approach and it is important that we strive to bring down the age of our vehicle fleet. Research released by the ABS this week shows that the average age of both passenger cars and light commercial vehicles has increased over the past five years,” said Mr Voortman.

“Our members also make passenger vehicles safer every day through servicing and maintenance work, and by fixing major problems through the vehicle recall campaigns, as we have been doing with Takata airbags,” he said.

“However, there is always more we can do to make Australia’s roads safer, and we look forward to meeting with the Committee members, appearing at its hearings and contributing to the work of the Committee in any way we can,” said Mr Voortman.

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Dealers Welcome Franchising Task Force but Automotive Code Should not be Slowed Down

The peak body representing Australia’s franchised new car Dealers welcomes the establishment of the Franchising Task Force, but has urged the Government to finalise the work already underway on specific protections for automotive Dealers.

“We appreciate the establishment of the Task Force and look forward to working with them. However, this should not come at the cost of progress already achieved by the Government in developing specific protections for franchised new car Dealers,” said AADA CEO David Blackhall.

“This work has support across the automotive industry, as well as from the Australian Small Business and Family Enterprise Ombudsman, the Franchising Council of Australia and both sides of politics; it is well advanced and should not be held up,” said Mr Blackhall.

“There is clearly a power imbalance between off shore car Manufacturers and their Australian Dealers. The industry is currently facing significant head winds and the formation of an automotive code or specific protections should be a priority for the Government,” said Mr Blackhall.

“There are currently Manufacturers who are experimenting with alternative distribution models that would allow them to still utilise Dealers but operate outside of the traditional Franchising model and the protections offered by associated legislation,” said Mr Blackhall.

“Dealers have made significant capital investments at the request of franchise partners. These businesses deserve to have their investments and employees protected,” said Mr Blackhall.

The Task Force was established to deliver the Government response to the recommendations of the Fairness in Franchising report, which was handed down earlier this year by the Parliamentary Joint Committee on Corporations and Financial Services.

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EOFY – Time is Right to Buy a New Car

The peak body representing franchised new car Dealers is urging consumers to take advantage of some excellent new car deals currently available as the financial year draws to a close.

“There are some fantastic deals available in showrooms throughout Australia and buyers should use the last two weekends of the financial year to secure a bargain buy,” AADA CEO David Blackhall said.

“Now is an excellent time to purchase a new car. Dealers are eager to clear stock to meet year-end targets and consumers stand to benefit from the recent interest rate cut,” he said.

“Many of Australia’s most popular vehicles are being significantly discounted and there are a range of other incentives for buyers, including very low interest rates, discounted servicing plans, no on-road costs, compimentary accessories and upgrades,” he said.

“If you are thinking of buying a new car before 1 July, do your reseach. Go online and make use of the wealth of available information comparing all the specials on the various makes and models,” said Mr Blackhall.

“Consumers should also visit their local Dealer, talk to the sales staff and request a test drive. Modern new vehicles are safe and environmentally friendly. They come equipped with remarkable specifications ranging from autonomous driving features to state of the art infotainment and it is important to experience this prior to buying,” he said.

“Its been a difficult period for the automotive retail industry with national new car sales contracting for 14-months straight. However, we are hopefull that the market will turn with the federal election out of the way and the Reserve Bank cutting the official cash rate by 25 basis points earlier this month,” he said.

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New Car Dealers Welcome Morrison Ministry

The Australian Automotive Dealer Association (AADA), has welcomed the appointment of Prime Minister Scott Morrison’s Ministerial team.

“It is excellent news that Minister Karen Andrews has retained the Industry portfolio and we look forward to working with her on the very important Automotive Franchising work she started in the previous term of Government ,” AADA CEO David Blackhall said.

“There is no more important issue for our industry than finalising the work that has already started on developing an Automotive-specific franchising code,” he said.

“We also welcome the appointment of the Government’s Treasury team and congratulate Michael Sukkar on his appointment as Assistant Treasurer and Minister for Housing and Jane Hume on her new role as Assistant Minister for Superannuation, Financial Services and Financial Technology. We anticipate a close working relationship with Treasurer Josh Frydenberg and his team on key issues relating to the recommendations from the financial services royal commission,” he said.

“In the Infrastructure and Transport portfolio, we look forward to working with Deputy Prime Minister Michael McCormack as well as Assistant Ministers in the portfolio Scott Buchholz and Andrew Gee,” he said.

“We congratulate Angus Taylor for his appointment as Minister for Energy and Emissions Reduction and Susan Ley on her appointment as Environment Minister. We look forward to playing our part in future discussions on reducing vehicle emissions in Australia,” he said.

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Victoria’s Car Tax Will Hurt Industry

The Australian Automotive Dealer Association is concerned over news reports that the Victorian Government is considering adopting a state Luxury Car Tax.

“Reports that the Victorian budget will increase duty for vehicles over $100,000 are incredibly concerning for an industry which is currently doing it tough,” said AADA CEO David Blackhall.

“The new car retail industry in Victoria has contracted by more than 10 percent year to date, the most of any state in the country. Now is not the time for a tax grab, with people’s businesses and jobs at stake,” said Mr Blackhall.

“Victorian new car Dealers employ almost 14,000 people, provide millions in community donations and make a significant contribution to the state’s tax base,” he said.

“Victorian motorists have experienced significant hikes in duties under this Government and have made a strong contribution to the state’s coffers by paying rego and duties, while also shelling out GST, tolls and fuel taxes. At some stage you have to say enough is enough,” he said.

“This will be framed as a tax on luxury vehicles which will fall on wealthy individuals, but it is well known that these vehicles are often purchased by businesses. This will simply constrain economic activity,” he said.

“Furthermore, this tax will discourage people from buying some of the safest vehicles available in Australia. This is not a good outcome for a jurisdiction which according to the Australian Automobile Association is struggling to meet targets under the National Road Safety Strategy,” he said.

“There is already a Luxury Car Tax which is levied by the Federal Government and this duplicate tax will only add to the cost of vehicles with advanced safety and fuel efficiency features,” he said.

“This is of course, a tax on a tax on a tax – triple taxation, since stamp duty compounds on both GST and the Federal Luxury Car Tax. It’s a bad tax, a poor policy choice and will hurt the new car retail industry.”

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AADA Congratulates Scott Morrison and the Coalition

The peak body representing franchised new car Dealers has congratulated Prime Minister Morrison and the Coalition on winning the federal election.

“The final make-up of the Parliament is still to be determined but it is clear that Prime Minister Scott Morrison will be leading a Coalition Government,” said AADA CEO David Blackhall.

“There are a number of important policy and regulatory issues facing the car retail industry and we look forward to working with the Government to ensure it remains a viable industry,” he said.

“No issue is more important than making sure that the work conducted by the Department of Industry, Innovation and Science in relation to an Automotive Code of Conduct is seen through and implemented. This should be a priority for the next term of Government,” he said.

“I also congratulate all the new Members and Senators elected to Parliament. AADA will be reaching out to them all to discuss the significance of our industry to cities and regions across Australia,” said Mr Blackhall.

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Election Scorecard – AADA Welcomes Bipartisan Commitment to the Automotive Code of Conduct

The Australian Automotive Dealer Association (AADA), has received policy plans from both major parties in response to the Driving Our Future Election Campaign.

“The AADA asked both parties to address the four policy priorities including a fairer automotive industry; affordable new vehicles; ruling out used car imports; and a consumer focussed emissions policy,” AADA CEO David Blackhall said.

Each response has been ranked on a scorecard (see below) to illustrate each party’s commitment and on this occasion the two parties could not be separated.

“We are delighted that both sides of politics have provided an election commitment to introducing a code of conduct for the retail automotive industry. This is the number one priority for new car Dealers and we look forward to working with the future Government and Opposition to make this commitment a reality,” he said.

“Unfortunately, there are no specific policies to remove legacy taxes on new cars, which disadvantages consumers, but we note that Labor’s Australian Investment Guarantee has the potential to make certain vehicles more affordable for businesses,” he said.

“Both parties have ruled out expanding the regime for used car imports. However, we remain concerned that there may be unintended consequences arising from regulations currently before the parliament. We will work with whoever forms government to address these concerns,” said Mr Blackhall.

“On the question of vehicle emissions, there is a distinct lack of detail from both sides, but we are pleased that each party has clearly stated they will work with industry in formulating vehicle emissions policies,” he said.

After the Election, the AADA will work closely with whoever wins government to advance the interests of the Automotive Industry.

AADA Questionnaire

ALP Response

Coalition Response

AADA Election Campaign Wesbite

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AADA Launches the 2019 Convention & Expo: 2020 + Beyond, A Vision for Car Retailers

The peak body representing franchised new car Dealers is pleased to announce the launch of the AADA 2019 National Dealer Convention & Expo, which will be held at the Melbourne Convention & Exhibition Centre 9 – 11 September 2019.

The theme for the AADA 2019 National Dealer Convention & Expo is “2020 + Beyond – A Vision for Car Retailers” and will include a dedicated business program.
“Our business model is under significant pressure, mainly due to the ever changing landscape of regulatory oversight, advancing technology, and the demands of the internet savvy, educated customer,” said AADA CEO David Blackhall.

This AADA Convention program delivers on many fronts, including solutions on gender diversity, franchise relations, F&I operations and dealership ROI, which underpin a diverse workshop schedule, providing a vision for the operational demands of today’s car retailers. Special presentations by SpinCar Founder & CEO, Devin Daly, and NADA Executive Vice President & Chief Legal Counsel, Andy Koblenz, will feature throughout the event.

The AADA Expo will be accessible to all through a new Open Day initiative and provide sales staff with new skills through the Sales Team Event on Monday 9 September.

Special guests include The Hon. Adem Somyurek MLC, Minister for Local Government and Small Business, Australian of the Year Dr Richard Harris SC, OAM and former Governor General of Australia Sir Peter Cosgrove AK, MC.

“The AADA 2019 Convention is a critical industry event and dealers should make attending a high priority,” Mr Blackhall said.

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New Car Dealers “DRIVING OUR FUTURE”

The Australian Automotive Dealer Association (AADA), the peak body representing franchised new car Dealers has launched the “Driving Our Future” campaign.

The campaign will engage with candidates and members of the public in the lead up to the federal election to promote the need for policies that will drive the future of our industry.

“Our industry is at a crossroads. New car sales are down, and profitability of Dealers is declining; it is crucial that candidates clearly outline their plans for our industry,” said AADA CEO David Blackhall.

“We need to remind candidates and voters that new car Dealers are important businesses, which make a total economic contribution of almost 14 billion and employ 60,554, including 4838 apprentices in electorates across Australia,” he said.

The campaign will focus on the four key issues that are critical to the immediate future of new car Dealers in Australia:

The need for an Automotive Code of Conduct that addresses power imbalances between Manufacturers and Dealers
A modern automotive taxation system to encourage affordable cars
A consumer focussed emissions policy
The need to rule out used car imports

“Throughout this campaign, we will be talking to candidates to ensure they hear our concerns, and will be using every means at our disposal, including direct contact, social media and mainstream media to take our message to the voters,” he said.

AADA Election Campaign website

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