Archives: Media Releases

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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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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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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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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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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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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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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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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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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