Archives: Media Releases

The Australian Automotive Dealer Association (AADA) has expressed disappointment with the decision handed down in the Supreme Court of Victoria today which found that General Motors did not breach its agreement with Holden Dealers by failing to supply them with vehicles.

The case was brought forward by a group of Dealers who did not accept GM’s controversial compensation offer at the time the Detroit-based company killed off the Holden brand in Australia. The Dealers are now considering their options.

“Today will come as a massive blow to those Dealers who have gone through the exhausting and emotional process of taking on a giant multinational car company,” said AADA CEO James Voortman.

“The legal argument successfully put forward by GM that they had no obligation under the Dealer Agreement to supply cars to their retailers is incredibly disappointing and sets a dangerous precedent for the automotive industry,” he said.

“These Dealers upheld their end of the bargain. They invested in facilities, employed staff and dedicated their talents to selling Holden vehicles in the communities in which they operate because they were led to believe that the Holden brand was set to stay in Australia for the long haul.”

This is just another unedifying chapter in the story of how GM killed off one of Australia’s most iconic brands and harmed its 200 Dealers in the process.

“The way in which Holden pressured its Dealers into accepting compensation offers resulted in rebukes by Commonwealth Ministers, a censure by the Australian Parliament and criticism from the competition watchdog,” said Mr Voortman.

“This highlights the importance of the franchising protections announced by the Government earlier this week and it is critical that we achieve bi-partisan support and enact these measures as soon as possible.”

“There also needs to be a conversation about how franchisees access justice. Large companies are only too happy go through a court process which is costly and can takes years to get an outcome,” he said.

DOWNLOAD MEDIA RELEASE

The Australian Automotive Dealer Association (AADA) welcomes today’s Federal Government announcement to strengthen protections for new car and truck franchisees. The Government has committed to extending protections against unfair trading practices and unfair contract terms to all franchisees, including Australian new car and truck Dealers. The Government has also committed to prioritise work to ensure compliance with the New Vehicle Efficiency Standard is at the point of sale, rather than the point of import.

These reforms will go some way towards addressing the power imbalance which exists between new vehicle Dealers and the global manufacturers to which they are franchised. The AADA and its members have played an important and longstanding role in advocating for these additional protections.

The automotive industry is undergoing a period of great change, driven by a worldwide transition towards new technologies and business models. As this shift unfolds, there will be winners and losers – but these new protections will level the playing field for Dealers and allow them to make informed business decisions with greater security.

“These changes are a major step forward for Australian Dealers who are navigating the most significant transformation in automotive history,” said AADA CEO James Voortman.

“The exit of Holden from the Australian market, along with the ongoing court cases between Dealers and Honda and Mercedes-Benz, have underscored the urgent need for stronger protections. Dealers deserve fair treatment, reasonable contractual terms, and the ability to make business decisions with confidence. These reforms deliver on that need,” he said.

With the global automotive industry shifting rapidly due to electrification and the emergence of many new manufacturers to our shores, these strengthened protections come at a critical time. By establishing a fairer and more balanced framework for franchise relationships, the reforms will bolster investment in the market, secure jobs, and provide a level playing field for Australian businesses.

“The transition we are witnessing presents both challenges and opportunities,” Mr Voortman added. “Ensuring fairness in contracts and trading conditions is essential to allowing Australian Dealers to compete and thrive in a changing world.”

“The AADA also welcomes the additional funding provided to the ACCC to enforce the Code and looks forward to working with the regulator to ensure franchisees are protected through a tough cop on the beat,” he said.

The AADA commends the government for its leadership on this issue and remains committed to working alongside policymakers to ensure a strong and competitive franchising environment for all Australian businesses.

DOWNLOAD MEDIA RELEASE

The Australian Automotive Dealer Association (AADA) acknowledges today’s announcement by the Albanese Government regarding the extension of unfair trading practice protections to small businesses.

“Extending these protections to small businesses is in line with numerous submissions put forward by the AADA over recent years, and we welcome the continued engagement with the Federal Government,” said AADA CEO James Voortman.

“While we support the intent behind these reforms, it is essential that the threshold for small business covers all franchisees, including franchised new car and truck dealers. Dealers continue to be subjected to unfair practices at the hands of large multinational vehicle manufacturers,” he said.

“Recent Federal Court appeals have demonstrated how multinational manufacturers leverage existing power imbalances to their advantage, often at the expense of Australian businesses. These practices undermine fair competition and place undue strain on locally operated dealerships, which play a crucial role in the Australian automotive industry and broader economy,” Mr Voortman said.

“AADA looks forward to engaging with the Government to determine the thresholds for small business qualification and to ensure that all businesses facing unfair practices, including new car dealers, are afforded appropriate protections,” he said.

AADA calls on both sides of Parliament to immediately address this power imbalance in response to what is the most significant transition the automotive industry has seen for some time. It is imperative that fair and equitable protections are implemented to support Australian businesses navigating these changes.

DOWNLOAD MEDIA RELEASE

The Australian Automotive Dealer Association (AADA) is pleased to announce that registrations for the 2025 AADA Convention & Expo will open on Monday 17 March 2025.

This premier event, set to take place on Tuesday 22 and Wednesday 23 July 2025, at the Brisbane Convention & Exhibition Centre (BCEC), will bring together leading minds and innovators in the automotive industry.

As the retail automotive sector undergoes significant transformation, dealerships must evolve their business models to remain profitable and meet changing consumer demands. Under the theme ‘Changing Lanes’, the 2025 AADA Convention & Expo will explore how emerging technologies – such as artificial intelligence (AI) and advanced digital solutions – can enhance operational efficiency and create smarter consumer experiences, including integrated finance and insurance (F&I) solutions.

Attendees can look forward to a dealer-focused business programme, featuring renowned industry leaders, thought-provoking panel discussions, and cutting-edge presentations.

Event Highlights

Tuesday 22 July 2025

AADA Auto-IT Opening Breakfast – Featuring a keynote address from The Hon. Julia Gillard AC, 27th Prime Minister of Australia and Chair of the Global Institute for Women’s Leadership.

This will be followed by a compelling panel discussion, ‘Driving Change: The Strategic Advantage of Women in Automotive’, moderated by Rachel Reed Butler of Women in Automotive, with insights from top industry professionals.

AADA Sovereign Insurance General Session – Internationally respected automotive consultant Glenn Mercer will present his updated study, ‘The Dealership of Tomorrow – A Global Perspective’, offering dealers a unique outlook on the evolving global retail automotive landscape.

AADA Cox Automotive Keynote Session – A keynote interview with 2025 NADA Chairman, Tom Castriota, followed by an essential panel discussion, ‘Navigating Change: The Top 5 Policy Issues Impacting Dealers’, moderated by AADA CEO James Voortman.

Wednesday 23 July 2025

AADA youX Special Presentation – A must-attend panel discussion, ‘Embracing Change – AI, Automation & The Future of Automotive Retail’, featuring leading Australian dealer Wade von Bibra as moderator. This session will explore how AI and new technologies are reshaping the automotive retail experience.

AADA Expo & Live Stage – With over 70 exhibitors, this year’s AADA Expo will introduce a new Live Stage, showcasing cutting-edge products, services, and technologies that can help dealers drive efficiency and growth.

AADA Workshop Program – Over the coming weeks, further announcements will be made about key speakers and the AADA Workshop Program, which will feature 20 dealership focused sessions across the two-day event.

Registrations open Monday 17 March 2025, with early bird rates available until Wednesday 21 May 2025. Group booking options are also available.

Secure your place today – visit aadaconvention.com.au for more details and to register.

DOWNLOAD MEDIA RELEASE

The February 2025 edition of the Automotive Insights Report (AIR) shows a modest rebound in used car sales. Using data supplied by AutoGrab, February’s AIR saw sales rise 2.2 per cent to 174,762 units, however this came as total listings declined slightly indicating a tightening in some areas.

“While the increase in sales is a positive shift from January, the broader market remains in a state of adjustment,” said AADA CEO James Voortman.

“With supply contracting and demand still below historical levels, it remains a competitive market for sellers,” he said.

“Average days to sell a used vehicle remained stable at 48.5 days, suggesting that vehicles are still moving at a steady pace, albeit with some regional fluctuations,” said Mr Voortman.

The Suzuki Jimny continued its dominance in retained value rankings, holding the highest resale value among passenger cars and SUVs in both age brackets. With an impressive 108 per cent retained value, the Jimny has consistently outperformed larger and more expensive competitors, reflecting its strong demand in the market.

Ford Ranger retained its position as Australia’s best-selling used car, with a 2.5 per cent increase in sales. Toyota models continued to dominate the top-sellers list, with five of the top ten positions.

Highlights from the AIR for February 2025

• 174,762 used cars were sold, an increase of 2.2 per cent from January.
• Used vehicle supply fell by 1.8 per cent, with most states experiencing a drop in listings.
• Sales increased in major markets, with VIC (7.0 per cent) and NSW (3.8 per cent) leading the gains.
• Electric vehicle sales rebounded, up 11.4 per cent, though retained values remain under pressure.
• Average days to sell a used car held steady at 48.5 days.
• Japanese brands dominated, taking 8 of the top 10 best-selling models, with Toyota accounting for 5.

VIEW FEBRUARY 2025 AIR

DOWNLOAD MEDIA RELEASE

The January 2025 edition of the Automotive Insight Report (AIR) highlights a shift in the Australian used car market, with supply increasing by 3.4 per cent to 333,386 listings, reversing previous months of decline. However, consumer demand remains subdued, with total sales dropping by 5.9 per cent.

“The increase in listings, coupled with declining sales, suggests that the market continues to favour buyers,” said AADA CEO James Voortman. “Sellers are facing longer wait times to move stock, with average days to sell holding at 48.5. This trend may persist as the growing availability of new vehicles continues to impact the used car sector.”

“Retained values remained under pressure, with most vehicle segments showing declines. However, retained values for light commercial vehicles saw slight increases in some age categories, continuing to buck the trend.”

“The EV segment also experienced weakening demand, with total EV sales down by 7.9 per cent, and listing-to-sale ratios remaining the highest among all vehicle categories. This reflects the ongoing impact of new vehicle oversupply, which is putting downward pressure on used EV prices,” Mr Voortman added.

In retained value rankings, the Ford Mustang held the highest value among passenger vehicles (in the 2-4 year category), while the Suzuki Jimny continued a 15 month hold on the top spot in the SUV category. Toyota further cemented its market strength, holding 7 of the top 10 SUV retained value rankings.

HIGHLIGHTS FROM THE AIR FOR JANUARY 2025

• 171,007 used cars were sold in January, a decrease of 5.9 per cent from the previous month.
• Dealer contribution to both sales and listings is at its highest level in recent history.
• Sales declined across all states, with NT (-10.1 per cent) and VIC (-9.9 per cent) experiencing the largest drops.
• Average days to sell a used vehicle remained steady at 48.5 days.
• Passenger and SUV retained values declined across most model years, with LCV-Utes showing minor gains.
• Ford Ranger remains Australia’s best selling used car.
• Japanese manufacturers dominated the top sellers list, with 8 of the top 10 models originating from Japan, and Toyota alone accounting for 5 of the top 10.
• EV retained values continued to lag significantly behind other segments.

VIEW JANUARY 2025 AIR

DOWNLOAD MEDIA RELEASE

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the 2024 Year That Was Automotive Insights Report (AIR), providing a comprehensive analysis of the Australian used car market. While the market experienced strong growth for most of 2024, momentum slowed in the final months, signalling a more measured outlook for 2025.

According to the report, total used car sales in 2024 reached 2,324,805 units, a 12.1 per cent increase compared to 2023. Sales peaked in July, with sustained demand throughout much of the year before easing towards the end. Listings, on the other hand, peaked in November, highlighting a softening in consumer demand relative to supply.

“AADA is pleased to publish the second annual release of the Year That Was AIR. The 2024 results highlight a dynamic used car market that showed strong growth through much of the year before slowing in the final quarter,” said AADA CEO James Voortman.

“While demand remains healthy, we are seeing signs of cooling, particularly in the latter months, as affordability pressures and economic factors come into play.”

Toyota remained the top-selling brand, with 390,298 used vehicles sold, followed by Mazda and Ford. Among individual models, the Ford Ranger led with 82,448 sales, ahead of the Toyota Hilux and Toyota Corolla.

“Profit margins tightened, and days to sell increased by 15 per cent for listings between August and October, further indicating a slowdown in demand. As we head further into 2025, we anticipate a more subdued market, with sales likely to stabilise rather than grow at the rapid pace we saw earlier in 2024,” said Mr Voortman.

“This is good news for those in the market for a used car, with opportunities for a good deal,” Mr Voortman added.

VIEW 2024 YEAR THAT WAS AIR

DOWNLOAD MEDIA RELEASE

New research released today by the Australian Automotive Dealer Association, the EV & Hybrid Vehicle Wave 3 Insights Report, highlights that electric vehicle (EV) sentiment has remained largely stagnant since the previous survey about a year ago as economic pressures weigh on consumer decision-making.

The research is the third wave of tracking EV sentiments across the community, following similar studies conducted in September 2022 and January 2024, with feedback collected from a sample of 2,000 Australian drivers (representative by age, gender and household location across Australia).

“Intention to purchase an EV has plateaued with 39 per cent of respondents saying they would consider an EV for their next vehicle – largely unchanged from two years ago,” said AADA CEO James Voortman.

“Affordability remains the biggest barrier to EV adoption, with 55 per cent of respondents stating that EVs are simply too expensive, however, this has improved from 62 per cent in the first survey in September 2022, ” he said.

“Economic pressures are clearly influencing buyer behavior, with 64 per cent of respondents saying they are less willing to pay a premium for an EV due to current cost-of-living challenges. The average price premium consumers are willing to pay for an EV has dropped to just 6 per cent, down from 8 per cent in January 2024.”

“The research shows that respondents are more likely to consider traditional hybrids (52 per cent) than EVs (39 per cent) or plug-in hybrids (36 per cent), a finding which is backed up by current new car sales data.”

Other key findings from the report include:

• While 58 per cent of respondents consider EVs are better for the environment, this has fallen from 67 per cent since early 2024.
• Concerns over EV resale value and repair costs have increased since early 2024, adding to the hesitancy around adoption.
• The trend towards purchasing medium SUVs continues, with 32 per cent of respondents considering this body type for their next vehicle.
• Higher-income households are nearly twice as likely to consider purchasing an EV compared to those on lower incomes.
• Rural households remain significantly less inclined to purchase an EV compared to metro-based households.
• Over the last 10 months support for governments incentivising EVs has reduced from 69 per cent to 62 per cent.
• Support for a fuel efficiency standard is overwhelming, with 78 per cent of respondents supporting the policy.

“These findings underscore the importance of ensuring that policies aimed at boosting EV uptake consider affordability and infrastructure accessibility. With the recently introduced New Vehicle Efficiency Standard (NVES) now in effect, it is crucial that the framework supports consumer choice without compromising vehicle affordability,” Mr. Voortman added.

“If EV adoption is to accelerate, industry and government must work together to address cost concerns and improve the value proposition for consumers.”

 

VIEW FULL RESEARCH REPORT

DOWNLOAD MEDIA RELEASE

The Australian Automotive Dealer Association (AADA), the peak body for franchised new car and truck Dealers, has today released their pre-budget submission calling on the Federal Government to implement a range of measures in response to Australian Dealers losing confidence to invest in the automotive transition.

Over the past several years the AADA has recorded an increased number of disputes and threats of non-renewal of franchise agreements between offshore car manufacturers and local car Dealers since General Motors terminated the Holden brand in Australia.

“We have seen in recent years the willingness of some manufacturers to drag Australian Dealers through the courts where they are regularly drowned out in legal costs by fortune 500 companies. Constant threats of non-renewal of franchising agreements for Dealers not meeting unrealistic manufacturer demands undermines their appetite to invest and employ Australians,” said AADA CEO, James Voortman.

“The AADA is calling on both major parties to ensure there is a level playing field so that Australian Dealers have the confidence to invest in a nationally distributed Dealer network which has served consumers buying and servicing their vehicles so well for so long,”

“We know that the industry is going through a fundamental change and we are seeing a record number of new entrants emerging in the Australian market. It is essential that in their urgency to set up Dealer networks, these brands must operate under a fair and reasonable framework that governs their relations with Australian Dealers. That is why the AADA is calling on both major parties to commit to protecting Australian businesses,” Mr Voortman said.

The suite of measures the AADA is calling for comes off the back of Australian Mercedes-Benz Dealers heading back to court in March to appeal the Federal Court Decision which ruled in favour of the Stuttgart-based company, which changed its distribution to an agency sales model in 2021.

Mr Voortman, who this week returned from the United States where the key topic of discussion is how the automotive industry will respond to the Trump Administration’s withdrawal of incentives for the uptake of EVs, states “whenever I speak with Dealers across the United States, they are shocked to find out how vulnerable Australian Dealers are to changes in the market. With the emergence of new brands and technology, it is only appropriate that the Australian market now mirrors the protections found in the US.”

In the pre-budget submission, AADA is calling on a range of measures to be introduced such as giving Dealers protections against unfair trading practices and extending the ban of unfair contract terms, which will go some way to addressing the power imbalance between manufacturers and franchised new car Dealers. The AADA advocates that this in turn will encourage new entrants in the market whilst improving competition and productivity but not at the expense of existing Australian businesses.

VIEW AADA PRE-BUDGET SUBMISSION

DOWNLOAD MEDIA RELEASE

The December edition of the Automotive Insight Report (AIR) shows that the used car market observed a 3.8% drop in supply after months of oversupply, with listings falling to 322,532. However, the market continues to favour buyers with sales observing a significant decline of 8.1% to 181,724, offering consumers ample opportunity to strike a good deal during the festive period.

“Average days to sell have increased to 48.7, the highest since October, suggests that sellers are dealing with slower moving stock. This trend is expected to continue in 2025 as the growing oversupply of new vehicles creates a spillover effect into the used car market,” said AADA CEO James Voortman.

“All states but Northern Territory and Western Australia experienced a fall in the number of cars listed for sale,” he said.

Retained values remain on the downward trajectory, with almost every vehicle segment across every age category experiencing a drop in value for the month, with the exception of LCV-Utes in the 2-5 year age categories. Oversupply of new vehicles is negatively impacting retained values for used EVs as well, potentially prompting sellers to hold on to their vehicles for shorter periods of time.

“Average days to sell a used EV have returned to August levels, with Western Australia and South Australia experiencing increased demand, as reflected in a 19.8% and 10.7% rise in EV sales, respectively,” said Mr Voortman.

In the passenger segment, the Ford Mustang holds value best at 97.0% in the 2-4 year age category while the Toyota Yaris maintains top spot at 97.5% in the 5-7 year age category. In the SUV category, the Suzuki Jimny continues to hold top spot at 110.7% in the 2-4 year but is replaced by the Toyota Landcruiser in the 5-7 year old category at 87.9%.

HIGHLIGHTS FROM THE AIR FOR DECEMBER

• 181,724 vehicles were sold in December, a decline of 8.1% compared to the previous month.
• Northern Territory and Western Australia were the only two states experiencing a jump in listings by 7.5% and 0.5% respectively.
• 322,532 used cars were listed for sale in December, a decline of 3.8% from the previous month.
• All but Western Australia and South Australia experienced a decline in used EV sales.
• Average time to sell a used car has gone up to 48.7 days.
• Every vehicle segment across every age category experienced a drop in retained value for the month, with the exception of LCV-Utes in the 2-5 year age categories.
• The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
• In EVs, MG MG4 regained its position as the best-selling vehicle.

VIEW DECEMBER AIR

DOWNLOAD MEDIA RELEASE