Archives: Media Releases

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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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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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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