Media Releases Archive - Page 16 of 17

AADA Welcomes First SA Dealership to Host ANCAP Crashed Car

The peak body representing franchised new car Dealers has welcomed the very first display of an ANCAP crashed car at a South Australian new car dealership.

“The AADA continues their partnership with ANCAP to display crash-tested vehicles in new car dealership showrooms,” said AADA CEO David Blackhall.

“I congratulate the South Australian Department of Planning, Transport & Infrastructure and the RAA for joining ANCAP in this important national initiative, to increase consumer awareness of car safety though new car Dealers,” he said.

“Displaying a crashed car in a dealership assists sales staff to visually demonstrate the safety features on a car and educate consumers,” he said.

“ANCAP also has a mobile app that sales staff and consumers can use to compare various cars on the market,” said Mr Blackhall.

Dealers are well placed to educate new car buyers on the benefits of safer vehicles and the AADA looks forward to continuing the partnership with ANCAP to make safety part of the sales conversation.

The crash-tested Toyota Corolla Hybrid hatch will remain on display at CMI Toyota’s West Terrace showroom for the next few months.

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Budget Provides Little Relief for Automotive Industry

The peak body representing franchised new car Dealers is disappointed that taxes on new cars have not been abolished, but has welcomed the luxury car tax relief provided to farmers and tourism operators.

“Today marks a missed opportunity for the Government which has failed to remove legacy taxes for an industry that is doing it tough,” said AADA CEO David Blackhall.

“New car sales have slowed significantly in recent months, hurting car Dealer businesses and their 70,000 employees”, he said.

“For years, we have been told that the abolition of the import tariff and the luxury car tax would need to wait for a return to surplus, but the announcement that we are back in the black has not been accompanied by automotive tax relief”, he said.

“It has been over 18 months since passenger car manufacturing ended in Australia, yet motorists continue to pay taxes designed to prop up a non-existent industry,” he said.

“We applaud the Government for providing relief to farmers and tourism operators by increasing the luxury car tax refund for those eligible up to $10,000”, he said.

“However, we are very disappointed that this will only apply to vehicles purchased after 1 July 2019′, he said.

“We urge the Government to apply this increased refund immediately otherwise eligible businesses will delay their purchases for the next three months, hurting the car retail industry which is already down 8 per cent this year”, he said.

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Vehicle Emissions Standards Must Not Focus on Retailers

The peak body representing franchised new car Dealers has welcomed the Opposition’s cleaner transport policy, but has urged caution over applying CO2 standards to car retailers.

“We accept the Opposition’s invitation to consult on the timeline and coverage of vehicle emissions standards, but are concerned over the reference to these standards applying to car retailers,” said AADA CEO David Blackhall.

“In the US and the EU, it is the manufacturer not the retailer that needs to adhere to vehicle emissions standards,” he said.

“Dealers have limited influence over the product mix and the decision as to what cars are imported into Australia is entirely at the discretion of the manufacturers. In the end, Dealers can only sell the cars that are supplied to them,” he said.

“It’s simple, the company that makes the product should be responsible for meeting the standard,” he said.

“We welcome the Opposition’s electric vehicle policy and the development of a target for all new sales and a target for Government fleets,” he said.

“Achieving a target of 50 per cent of new car sales is ambitious and will require a significant improvement in affordability of electric vehicles and related charging infrastructure.”

“However, this target is more constructive than a policy which seeks to ban the sale of new internal combustion engine vehicles,” he said.

“New car Dealers have an important role to play in distributing the many electric vehicles that will be sold in the coming years and our members look forward to educating and supporting customers as they transition to this exciting new technology,” he said.

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Greens New Car Tax Plans Will Hurt Tradespeople and Industry

The release of the Greens transport policy today reveals their plans for a new car tax and the abolition of new combustion engines by 2030.

“We support the Greens intention to reduce transport emissions, but the way to do that is to remove older vehicles from the roads, not increase the price of new vehicles, which are cleaner and more efficient,” said AADA CEO David Blackhall.

“The emissions intensity of new vehicles has reduced by 28 per cent over the past 15 years and this trend will only accelerate as more affordable electric vehicles and hybrids are increasingly sold,” he said.

“The industry does not need another luxury tax on vehicles. Car buyers already pay hundreds of millions each year to the federal government for a tax that falls on some of the safest and cleanest vehicles, including many electric vehicles.

“The proposal to ban new internal combustion engine vehicles by 2030 could do serious harm to tradespeople and the retail car industry,” he said.

“Australia’s two top selling vehicles are the Toyota Hilux and the Ford Ranger, both utes which are used to carry heavy loads and tow trailers significant distances. Currently, these vehicles can only perform to these standards with an internal combustion engine and it is uncertain whether an alternative powertrain will be available to satisfy their role in a decade,” he said.

“Regulations seeking to reduce vehicle emissions should avoid dramatic price increases and restriction of choice, as this may lead to reduced new car sales which will hurt industry and result in poor environmental outcomes,” he said.

“The focus should be on making greener vehicles more affordable and convenient not making new vehicles more expensive,” he said.

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Dealers welcome increased protections outlined in the Report of the Franchising Inquiry

The peak body representing Australia’s franchised new car Dealers has welcomed calls for increased protections for Dealers contained in the report from the Parliamentary Inquiry into Franchising.

“We welcome the recommendation for changes to the Franchising Code, to embody specific industry protections within schedules to the current Franchising Code.”

“While the Report stopped short of recommending our preferred approach of a standalone Automotive Code, we are prepared to discuss with Government the Committee’s proposal for a core Franchising Code with greater powers, and schedules to the Code that address specific industry considerations,” said AADA CEO David Blackhall.

“We particularly welcome the prohibition on unilateral changes to the Terms and Conditions of Dealer Agreements, and the buyback conditions for stock, parts and equipment when a Dealership Agreement is terminated. The Government needs to include these proposals in their consideration of a standalone Automotive Code,” he said.

“It is now very important for the Government to respond to the Inquiry Report quickly. This will maintain momentum and address the power imbalance between overseas vehicle Manufacturers and local new car Dealers, which currently leaves Australian businesses and their many employees extremely vulnerable,” he said.

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NSW Car Tax to Hurt Already Fragile Industry

The Australian Automotive Dealer Association (AADA), the peak body representing Australia’s franchised new car Dealers has questioned the need for the NSW Labor Party’s car tax amid new data showing the industry is doing it tough.

Data released today by a Federal Chamber of Automotive Industries shows that sales for new cars is down 8.4 percent year-to-date nationally, while the figure for NSW is a staggering 9.6 percent down year-to-date.

“Car sales are down for the 11th month in a row and given the state of the industry in NSW the last thing it needs is another tax,” said AADA CEO David Blackhall.

“Sales of premium cars have been particularly hard hit in recent months. This tax will further restrict such sales which is a shame as these cars have advanced safety and environmental features which are good for society,” he said.

“Sales of electric vehicles remain very low and this proposed new tax will further discourage the uptake of no emissions cars as it falls on most of the electric vehicles available on the Australian market,” he said.

“We remain concerned about the effect this tax will have on vehicles such as the Toyota Landcruiser, which is not a luxury car and is important to many regional motorists,” he said.

“The point has been made that only two models of Landcruiser are above the proposed thresholds, but this ignores the fact that it is one of the most accessorised vehicles in Australia and the cost of safety and off-road accessories can add thousands to the final price, pushing many vehicles over the threshold,” he said.

“There is already a federal luxury car tax and this is tax on a tax on a tax which is unwarranted and tough on the retail car industry and its customers,” he said.

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NSW Labor’s Tax on Cars a Blow to Industry

The New South Wales Labor Party’s policy to increase car taxes would be a blow to motorists and a struggling car retailing industry.

“This taxation proposal could not come at a worse time for NSW car Dealers who are currently doing it tough,” said AADA CEO David Blackhall.

“New car sales declined by six percent in NSW in 2018, over three times more than any other state in Australia. The industry is struggling due to drought and a tightening credit market and does not need another tax hit,” he said.

“It’s very disappointing that the NSW Labor Party is targeting an industry that employs more than 22,500 people throughout the state, including many in rural and regional electorates, and contributes more than $700 million to the state’s coffers,” he said.

“NSW motorists have made a strong contribution towards a healthy state surplus 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 sold as a tax on luxury vehicles and it’s been suggested this proposal will target those driving Maseratis. Let’s be very clear, at that price point this tax will fall on a top selling vehicle such as the Toyota Landcruiser. A car which motorists in regional and rural areas would describe as a necessity rather than a luxury”, Mr. Blackhall said.

“This policy will also make most of the electric vehicles available in Australia significantly more expensive, which makes a mockery of any attempts to promote the uptake of electric vehicles,” 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 completely inappropriate given the worrying signs emerging in the NSW economy.”

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AADA Notes AHG Appointment

AADA notes the Australian Stock Exchange announcement today that Mr David Blackhall, currently CEO of AADA will join the board of Automotive Holdings Group Ltd to fill a vacancy as a non-executive director.

The announcement and appointment is consistent with our Media Release dated 18 February 2019 and the AADA Board congratulate David on his new part time role. David will remain CEO of AADA until the end of his services contract on 30 June 2019.

The AADA transitional leadership plan, also announced on 18 February 2019, remains unaltered as a result of the announcement.

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Don’t Rush to Ban Point of Sale Exemption

Legislation proposed today requiring retail car Dealers to operate with credit licences should not be rushed as it will likely increase costs for consumers and come as a blow to small, regional car dealerships.

“We understand and respect the Opposition’s desire to implement a range of recommendations from the Banking Royal Commission, but there are serious risks from rushing this legislation through,” said AADA CEO David Blackhall.

“We are still not sure what this policy will mean for the provision of finance at dealerships. The majority of new car Dealers, particularly mid-to-small and regional dealerships, do not have credit licences, and there will be a considerable cost of compliance for many businesses,” he said.

“New car Dealers already comply with consumer credit laws through the finance companies providing the credit services at the dealership. Rushing ahead to implement these changes will result in significant costs falling on smaller dealerships and those costs will ultimately have to be passed onto consumers,” he said.

“It is crucial that any point of sale changes are done through a considered consultation process which brings to together retail dealers, credit providers and government,” he said.

“We are still uncertain why the exemption needs to go. Obtaining finance from a dealership is a cost effective, convenient solution for many consumers.

Furthermore, the Royal Commission heard from ASIC that there were no concerns around the point of sale exemption and the interim report found that delinquencies in the car finance market are very low,” he said.

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AADA Announcing Transition Plan

AADA notes that CEO, Mr David Blackhall, has indicated his desire to reduce his full time commitments at the end of his current contract on 30 June 2019. AADA is delighted that David will continue in a consultancy and advisory capacity to the AADA for a further 6 months until 31 December 2019.

Separately, we are announcing leadership transitional arrangements in accordance with a plan approved by the AADA Board last year (see copy of Members’ Bulletin attached).

David has been an outstanding CEO for AADA.

During his almost four year tenure he has guided the Association through a period of unprecedented regulatory and legislative change. Whilst some of these regulatory changes are still being negotiated, David has agreed with the Board to continue to assist us through to fruition on these important matters during 2019.

We thank David for his leadership and look forward to continuing close ties through to the end of the year.

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