Media Releases Archive - Page 8 of 17

AADA Welcomes High Court Decision on Fuel Labelling Case

The Australian Automotive Dealer Association (AADA) welcomes the High Courts’ decision today to uphold the appeal in Mitsubishi Motors Australia Ltd & Anor v. Begovic.

“This decision is excellent news for Australia’s more than 3,000 franchised new car Dealers and will bring certainty to the process of selling new cars in Australia,” said AADA CEO Mr James Voortman.

“Federal regulations require all new vehicles to be affixed with a fuel consumption label listing the results from a government-specified laboratory test. The High Court has found that by complying with the letter of the law Dealers and manufacturers are not in breach of Australian Consumer Law,” he said.

“This is a victory for common sense which will allow Australian Dealers and manufacturers to continue to service the needs of their customers without fear of inadvertently breaching the law,” said Mr Voortman.

The AADA would like to thank Mitsubishi Motors Australia for their collaboration and leadership on this issue which had industry wide implications for all franchised new car Dealers and manufacturers.

For a copy of the judgement summary, click here.

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AADA and AutoGrab Release First Automotive Insights Report

The first edition of the Automotive Insights Report (AIR) is live today. AIR is a joint initiative from the Australian Automotive Dealer Association (AADA) and AutoGrab which will provide data on Australia’s used car market every month.

“Prior to the release of AIR there has been no reliable and regular dataset for the used car market, even though more than 65 per cent of all cars purchased in Australia are used cars,” said AADA CEO Mr James Voortman.

“AADA has partnered with the used car market data specialists, AutoGrab, to provide regular market data which will serve as a valuable resource for Dealers, consumers, and enthusiasts interested in the used car market,” he said.

“The first edition of AIR shows that after a number of years of tight supply, Australia’s used car market is seeing increased levels of stock with increases in the time it takes to sell a car and a gradual decline in retained values,” said James.

“AutoGrab is thrilled to partner with the AADA to bring greater transparency to the used car market. For the first time, consumers can navigate the market with confidence, armed with valuable insights into vehicle values and market trends, said Daniel Werzberger, Founder and CEO of AutoGrab.

“In an increasingly challenging landscape for car dealerships, with average days to sell on the rise and retained values experiencing a downward trend across the board, our priority is to revolutionise the way people navigate the used car landscape. This report marks a significant step forward in our mission to make car buying a transparent, informed, and value-driven experience for all,” he said.

The inaugural report shows that in November:

Across Australia 303,732 vehicles were listed for sale and in that period 206,417 were sold.
The data also shows that the overwhelming majority of used cars being bought and sold have petrol or diesel engines.
The used market for battery electric vehicles remains very immature with these vehicles making up only 1.25% of total vehicles for sale and only 0.6% of total cars sold for the month.
The average time to sell a used car is 52 days which is the highest it has been over the past 12 months.
Retained values are gradually declining after the record highs of recent years, but there are still several makes and models which are holding their value very well and, in some instances, exceeding their new market value.
The list of top selling cars in the used market closely reflects preferences in the new car market, with the Ford Ranger taking out top spot ahead of the Toyota Hilux.

These statistics will now be released each month, with next month’s release offering full calendar year data for the used car market.

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Strong Supply of EVs Available for Australian Consumers

The Australian Automotive Dealer Association (AADA) is encouraging consumers to take advantage of the ready supply of Battery Electric Vehicles (BEV) available in showrooms.

Dealerships across Australia have indicated that wait times for buyers hoping to get their hands on an EV have been slashed in recent months. Many variants are available and in stock now, and for some brands there is as little as a one month wait time for new orders placed today.

“There is no shortage of EVs available for purchase here in Australia. In many instances customers can walk into a dealership and drive out in a new EV in a matter of days,” said AADA CEO Mr James Voortman.

“In particular, EVs at the more affordable end of the spectrum have strong levels of supply which is good news for customers looking to make the transition to a BEV,” he said.

“It’s really important that we stop talking down the supply of EVs in Australia because they are available for customers to purchase and take delivery soon. We have canvassed Dealers across the country and checked delivery timeframes for online distributors. The supply situation for EVs is very healthy,” Mr Voortman said.

“We know there have been reports in the media recently of long wait times for customers who are looking to purchase a BEV, however, customers can be rest assured that there is plenty of stock and while there are some variants that continue to have extended wait times, supply issues are being resolved quickly, allowing customers to get into their new EV sooner,” he said.

“Customers should take note of the various state government EV purchase incentives, including in NSW where buyers can access EV stamp duty exemptions and rebates for contracts to purchase completed before 1 January 2024,” he said.

“Supply of some popular ICE and hybrid vehicles remains an issue, but the situation is improving,” said Mr Voortman.

Dealers are continuing to work with their manufacturers to deliver vehicles to customers as soon as possible and the AADA encourages any customers looking to purchase an EV to reach out to their local franchised new car Dealers.

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AADA Welcomes Appointment of Dr Michael Schaper as Independent Reviewer

The Australian Automotive Dealer Association welcomes the appointment of Dr Michael Schaper by the Minister for Small Business, Housing, and Homelessness, the Hon Julie Collins MP, as the independent reviewer of the Franchising Code of Conduct.

As a former Deputy Chair of the Australian Competition and Consumer Commission and former ACT Small Business Commissioner, Dr Schaper brings the necessary expertise and experience to this critical review of Franchising Regulations and the Code of Conduct.

This Franchising Review is a timely and welcome step to examine the regulatory settings in place to support Australia’s franchising sector, including by evaluating the effectiveness of previous reforms such as the New Car Dealerships provisions enacted in 2021.

AADA CEO Mr James Voortman said, “This review will be a significant step in ensuring a fair and transparent business environment for new car and truck Dealers across the nation and the AADA welcomes the government’s commitment to continually improve this vital regulatory framework.”

“In recent years there have been several high-profile automotive franchising disputes, a number of which remain before the courts. Now is an opportune time to review franchising regulations to ensure that that they remain fit for purpose and the Code is effectively protecting new car dealers and their customers,” said Mr Voortman.

“Franchised new car Dealers invest significant sums of capital, employ tens of thousands of Australians, and make significant contributions to their communities. It is important to ensure that elements of our franchising laws, such as termination processes, dispute resolution and contract terms, are fair and reasonable,” he said.

“Additionally, this review provides an opportunity to expand the provisions to encompass truck and other automotive franchised Dealers who are currently not afforded the automotive specific protections the Franchising Code provides,” he said.

The AADA looks forward to working closely with Dr Schaper throughout the review process.

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New Car Dealers Support Government Review Of Franchising Code Of Conduct

Franchised new car Dealers welcome the announcement by the Minister for Small Business, Housing, and Homelessness, the Hon Julie Collins MP, that a review into the Franchising Code of Conduct is due to commence in the second half of 2023. The review marks a significant step forward in ensuring a fair and transparent business environment for new car and truck Dealers across the nation.

“The decision to conduct a comprehensive review demonstrates the government’s commitment to continually improve this vital regulatory framework. It presents an opportunity to address any existing gaps or limitations in the current Code, ensuring it remains relevant and effective in the rapidly evolving automotive industry,” said AADA CEO James Voortman.

“The relationship between franchised new car and truck Dealers and their manufacturers has traditionally been characterised by strong partnerships and collaboration. However, in recent years there have been several high-profile automotive franchising disputes, a number of which remain before the courts. As the industry undergoes a period of rapid change including the emergence of many new automotive franchisors, it is critical that our franchising regulations are fit for purpose,” he said.

“The review of the Franchising Code presents an opportune moment to address these evolving dynamics and ensure that the Code effectively safeguards the interests of Dealers and their customers now and into the future,” said Mr Voortman.

“Additionally, the review provides an opportunity to expand the provisions to encompass truck and other automotive franchised Dealers who are currently not afforded the automotive specific protections the Franchising Code provides,” he said.

The AADA extends its full support to the government in undertaking this review process and looks forward to contributing to the consultation process on behalf of members when it begins.

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Dealers Welcome Fuel Efficiency Standards, But Devil is in the Detail

The peak body representing franchised new car Dealers welcomes the Government’s commitment to develop fuel efficiency standards for light vehicles.

The AADA is pleased to see the release of the Government’s National Electric Vehicle Strategy and will participate constructively in consultations on the key element of the strategy, the design of an Australian fuel efficiency standard.

“We believe the transition to cleaner and greener passenger cars can provide major benefits for consumers and businesses in the automotive supply chain. An appropriately structured fuel efficiency standard is an important element of this journey,” said AADA CEO James Voortman.

“The automotive industry is in fierce agreement that we need such a standard, but the detail that emerges out of the consultation will be critical. If we go too hard too fast we risk undermining vehicle affordability and choice.”

“We need a policy tailored for Australia’s unique circumstances as a small, right-hand drive vehicle, full import market,” Mr Voortman said.

“The standard also needs to be considered alongside other EV policy initiatives. In the US for example, fuel efficiency standards exist alongside incredibly generous purchase incentives. The full suite of policies needs to inform our ambition in this massive transition,” he said.

“The AADA are keen to work with the Federal Government and other participants in the automotive supply chain to ensure the fuel efficiency standard is ambitious, but achievable, allowing Australians to access state of the art fuel-efficient vehicles, without reducing vehicle affordability or choice,” said Mr Voortman.

We congratulate the Government on the other initiatives to encourage EV uptake announced in the National Electric Vehicle Strategy such as improving systems and charging infrastructure, and research to inform supporting an EV circular economy.

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Dealers Welcome Electric Car Discount

The peak body representing franchised new car Dealers welcomes the passing of the Treasury Laws Amendment (Electric Car Discount) Bill through the Senate.

The AADA supports the introduction of measures and incentives that encourage the uptake of zero or low emissions vehicles by Australian consumers.

“This is a good outcome which delivers on the Government’s election commitment to exempt eligible electric vehicles from fringe benefits tax,” said AADA CEO James Voortman.

“The passage of this Bill will come as welcome relief to all employers and their employees who have leased an eligible EV since 1 July and it will also give certainty to those who are considering doing so in the future,” said Mr Voortman.

“We would have preferred to see the Bill pass without sunsetting provisions for plug-in hybrid vehicles (PHEVs), but we acknowledge this represents a consensus position,” he said.

“We believe PHEVs provide a good solution for many Australian families with certain mobility needs, particularly in regional areas. We should not lose sight of the fact that PHEVs enjoy significant emission reduction benefits over internal combustion engine vehicles,” he said.

“It is imperative that employees taking out a lease on a PHEV before 1 April 2025 are provided with the FBT concessions across the life of their lease, so the latest amendments proposed by the Australian Greens and Senator David Pocock are critical,” said Mr Voortman.

“This Bill represents a good first step for the National Electric Vehicle Strategy, and we look forward to working with the Government and our automotive industry colleagues to progress the transition to net zero,” he said.

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New Net Zero Unit Important Step to Transport Decarbonisation

The peak body representing franchised new car Dealers welcomes the new Net Zero Unit established in the Department of Infrastructure, Transport, Regional Development, Communication, and the Arts.

“The AADA congratulates the Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, for leading this initiative and advancing coordination towards Net Zero within Government and between Government Departments,” said AADA CEO James Voortman.

“We hope that the Net Zero Unit will provide stakeholders from across the automotive industry with an opportunity to offer input to the Government as it develops initiatives to lower transport emissions,” he said.

“New vehicle retailers will play an important role in the transition to Net Zero by selling zero and low emissions vehicles and educating consumers on these new technologies,” he said.

“There is an expectation that the transition to lower transport emissions will be carefully managed so that change occurs in an orderly manner and with the best possible results for the ultimate goal which is the decarbonisation of transport,” he said.

“Dealers support an ambitious, but achievable transition to lower emissions and electrification. Franchised new car Dealers work closely with their Manufacturers in developing inventory which reflects market preferences, and as this preference transitions to EVs our members will respond to the market,” said Mr Voortman.

“We look forward to working closely with the Net Zero Unit to ensure the voice of Australia’s more than 3,000 automotive Dealers and their 59,000 employees are taken into account,” he said.

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Dealers Welcome Consultation On National Electric Vehicle Strategy

The peak body representing new car Dealers welcomes the announcement by the Federal Government that it will consult on the establishment of a national electric vehicle strategy.

“The AADA looks forward to contributing to the consultation process on behalf of Australia’s more than 3,100 new car Dealerships and their 59,000 employees,” said AADA CEO James Voortman.

“New car Dealers support action on lowering vehicle emissions, and consultation with industry is an encouraging sign that Australia will have a fit for purpose, nationally led, electric vehicle strategy,” he said.

“As zero and low emissions vehicles (ZLEV) become more prevalent, new car Dealers will play an important role in supplying those vehicles to the market. They will also play an important role in demonstrating ZLEV cars to their customers and educating them on issues such as range, charging and performance,” said Mr Voortman.

“It is incredibly important that the thousands of small and family automotive businesses which employ people, train people, invest in our economy and provide Australians with transport play a major part in the development of this strategy,” said Mr Voortman.

“While the automotive industry can agree that a vehicle emissions standard is an important step forward, the devil is in the detail and we should be guided by a sensible evidenced-based approach, taking into account Australia’s unique features,” he said.

“A vehicle emissions standard will accelerate the emergence of ZLEVs, bringing many opportunities for business and benefits to the community, but in the US and Europe such standards have been complemented by generous financial incentives and industry have been given an appropriate timeframe to adjust,” said Mr Voortman.

“Australia is a very small right-hand drive vehicle market in global terms, and it is situated at the end of a long and complex supply chain. Australia’s vehicle emissions standard needs to be realistic, achievable, and should not unduly punish consumers or motorists who cannot afford the transition,” he said.

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Vehicle Emissions Standards Should Be Appropriate For Australia

The automotive industry supports the need for a vehicle emissions standard but restricting the sale of internal combustion engine vehicles by 2035 is a risky approach for Australia and its unique circumstances.

Statements being issued suggesting that in developing a standard, the Government should ignore the automotive industry are incredibly concerning and completely inappropriate.
AADA CEO James Voortman said, “Dealers, Manufacturers, independent repairers and other automotive businesses employ hundreds of thousands of Australians and should not be ignored.”

“Industry expertise will be crucial in informing Government policy which is achievable.”

“The industry supports a vehicle emissions standard, but it needs to be one that is realistic and does not unduly punish consumers or result in motorists holding on to their older vehicles for longer,” he said.

“We keep hearing calls for Australia to implement vehicle emissions standards which are in line with those that exist in the US and Europe. It is a fact that such standards have been in place in the US and the EU place for well over a decade, allowing those countries an appropriate and achievable transition period,” said Mr Voortman.

“It is also a fact that in the US and the EU vehicle emissions standards are complemented by generous incentives for consumers. In a market like Germany, you can get up to $13,000 (AUD) in up-front incentives before tax benefits. This level of incentive is not available to consumers in Australia, and it does not appear to be on the horizon,” he said.

“Australia is a very small right-hand drive vehicle market in global terms, and it is situated at the end of a long and complex supply chain. These factors need to be taken into account when developing a vehicle emissions policy which is fit for purpose,” Mr Voortman said.

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