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The peak body representing franchised new car Dealers has welcomed the Federal Budget’s provision of fuel tax relief but called on the Government to commit to structural tax reform in the automotive industry.

“While today’s Budget responds to the current cost-of-living pressures being experienced by so many car owners, we desperately need a national plan for the major changes facing the automotive industry,” AADA CEO James Voortman said.

“In the lead up to the reintroduction of the full fuel excise in September 2022, the Government should consult widely on reforming this heavily taxed sector,” he said.

“Dealers’ customers provide tens of billions in taxes annually to federal, state and territory governments. Halving the fuel tax for motorists for six months will relieve some pressure in the short term, but what is desperately needed is a wholesale review of the automotive taxation system in Australia,” said Mr Voortman.

“This budget shows that motorists will be paying billions in taxes, such as import tariffs, the luxury car tax, fringe benefits tax, GST and excise. With Australia no longer manufacturing passenger vehicles and with the emergence of low emissions vehicles (LEVs), it is questionable whether our current automotive taxation regime is fit for purpose,” he said.

“This is a time of immense change in the automotive industry, and we are seeing state and territory governments follow their own paths on crucial issues such as provision of incentives for LEVs, vehicle taxation and road user charging. We simply need national leadership,” said Mr Voortman.

 

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The peak body representing franchised new car Dealers has welcomed the Morrison Government’s announcement of increased penalties for breaches of the Franchising Code of Conduct.

“Stronger penalties in conjunction with recently introduced reforms to the Franchising Code of Conduct are good for small businesses and they are good for franchised new car Dealers,” said AADA CEO James Voortman.

“The penalties come after a series of franchising disputes between automotive Dealers and vehicle Manufacturers and they provide a greater deterrent for those franchisors which breach the Franchising Code of Conduct,” he said.

“These changes will bring a degree of balance to the relationships between new car Dealers and the Manufacturers to which they are franchised. The reforms are sensible and fair and will encourage all Manufacturers to rise to the standard already employed by ethically-minded car brands operating in Australia,” he said.

“Franchised new car Dealers are determined to work with Manufacturers in good faith in this time of great change in the automotive industry. The Government’s reforms are not aimed at stopping change, but rather ensuring it is conducted in a fair and reasonable manner,” said Mr Voortman.

“We would like to thank the Minister for Small and Family Business, Stuart Robert, for the work he and other members of the Government have undertaken in bringing about these landmark reforms in recent times,” he said.

Automotive Dealerships are important local businesses which employ Australians, invest in Australia and pay their tax in Australia. Dealers look forward to healthy commercial relationships with their Manufacturers, so we can continue to bring many benefits to Australian consumers and communities.

 

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The AADA has welcomed consultation on options to ensure businesses comply with the consumer guarantee provisions in the Australian Consumer Law.

“New car Dealers are very much focused on providing their customers with a first-class experience and we welcome the Government’s efforts in trying to ensure compliance with consumer guarantees,” said AADA CEO James Voortman.

‘It is encouraging that the regulation impact statement has identified options to strengthen supplier indemnification. The ACCC’s market study into the new car industry highlighted the issue of Manufacturers not indemnifying their Dealers,” he said.

“Too often Dealers, which are the suppliers under the ACL, are the meat in the sandwich caught between the customer and the Manufacturer of the vehicle when there is a request for a remedy” Mr Voortman said.

“Motor vehicles are a high value purchase and require ongoing maintenance which is often conducted through the Dealer network. Dealers often suffer significant financial loss by replacing or refunding a vehicle only to be told they will not be indemnified,” said Mr Voortman.

The AADA has previously expressed concern around practices such as warranty extrapolation and denial of warranty payments as well as terms in franchise agreements, which:

• prohibit Dealers from making admissions of liability without prior approval of a Manufacturer;
• require Dealers to obey Manufacturer instructions in relation to a consumer’s request, complaint, claim or legal proceeding; and
• state Dealers will lose their right of indemnity if they did not adhere to such Manufacturer instructions.

The AADA looks forward to working with the Government and other stakeholders through this consultation process.

 

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The peak body representing franchised new car Dealers has responded to the ACCC’s conclusion of its investigation into General Motors’ conduct towards Dealers in withdrawing the Holden brand from Australia.

The ACCC announced it was concerned by the behaviour of GM, but it was concluding its investigation so as not to prejudice the legal action being undertaken by Holden Dealers against GM.

“This will be disappointing news for many ex-Holden Dealers, but General Motors should not see this as vindication of their actions,” said AADA CEO James Voortman.

“The ACCC has by no means endorsed their actions, labelling its treatment of Dealers as ‘a lesson to all franchisors of what not to do’ and ‘damaging the General Motors brand’,” he said.

“The ACCC’s comments came after a bi-partisan Senate committee censured General Motors for their treatment of Holden Dealers, employees and their families,” he said.

“GM’s actions led the Government to introduce reforms on 1 July of this year which would prevent other car Manufacturers following their actions. These are important reforms for the Australian automotive industry and we will continue to monitor the operation of these laws,” Mr Voortman said.

“The ACCC has been very clear that it is not pursuing this matter because it does not want to prejudice the private actions being taken by Dealers against General Motors,” he said.

The AADA will continue to support those Dealers who are battling GM in court.

The ACCC is looking into whether Holden’s car servicing arrangements, and the decision to end the ‘lifetime’ capped price servicing program, raise any issues under the Australian Consumer Law.

 

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We are pleased to announce that the AADA Board has elected David Blackhall as the Australian Automotive Dealer Association’s new Chairman, commencing his duties as an independent director following the AADA Annual General Meeting this afternoon.

David has excellent industry experience through a long and successful career in the automotive industry. As the former CEO of the AADA (2016-2019), David also has extensive experience in working with the Government and industry. During his time as the AADA CEO, he made some significant gains for the AADA and its members. Since 2019, David has continued to provide valuable support to the AADA and its members as an independent consultant, supporting the AADA in its fight for better automotive franchising regulations.

Separately, the AADA is also welcoming two new Directors to its Board. Edwina Gilbert, Executive Chair of the Phil Gilbert Motor Group, will be joining the Board as a Director for New South Wales and David Reynolds, Managing Director of the Steinborner Automotive Group, will be joining as the Director for South Australia. Both Edwina and David have extensive experience in the automotive industry and have served on the Australian Motor Dealer Council. Their appointment will take effect immediately, following approval at the AGM today.

Finally, we would like to acknowledge outgoing Chairman Terry Keating for his leadership and guidance over the past six years. Terry has played a significant role in making AADA the peak Dealer body in Australia, recognised by Dealers, other industry bodies, regulators, and the Government. Terry was instrumental in convincing the Dealer councils to commit to an adequate level of funding for the AADA. He has presided over several major achievements, including the hard-fought reforms to automotive franchising laws and the reversal of plans to allow for parallel imports of new vehicles to name a few.

Terry’s time as Chair comes on the back of a lifetime of service to the automotive industry including roles as the President of MTA-NSW, a director of the MTAA, Chair of the Ford National Dealer Council and Chairman of the BMW National Dealer Council.

Terry has chaired his final Board meeting today and the industry will formally honour him in person at the AADA Chairman’s Dinner in March 2022.

 

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The AADA welcomes the Morrison Government’s future fuels and vehicle strategy. The strategy announced today by the Prime Minister encourages consumer choice and will expand Australia’s EV charging infrastructure.

“Consumers are buying hybrids, EVs and PHEVs from their Dealers in record numbers and it is good to see a strategy which responds to this phenomenon by increasing the charging network and considering implications for the electricity grid,” said AADA CEO James Voortman.

“Australia is a huge continent and range anxiety is still a big issue for people considering the purchase of an EV. Bolstering the charging network will give consumers more confidence that an EV can satisfy their needs and will supercharge EV sales,” said Mr Voortman.

The Government will provide $250 million in funding which is expected to grow to more than $500 million when combined with additional contributions from the private and public sectors. The Government expects that by 2030 sales of EV and PHEV vehicles will be 30% of the passenger and light commercial market.

The strategy also outlines the need for collaboration between The Federal and state governments.

“It is vital that the Federal Government takes a leadership role on EVs. Currently, we have state and territory governments across the country developing their own unique EV policies. It is in the interest of motorists, the industry and the country for us to have a consistent approach,” he said.

While the Government ruled out subsidies, the AADA has urged the Government to look at existing taxes which apply to fuel efficient cars. “Taxes such as the Luxury Car Tax and the Passenger Vehicle Tariff continue to drive up the cost of many EVs in the Australian Market”.

Mr Voortman continued, “It’s time we reviewed and modernised the tax and duties that apply to all vehicles so that in future we have strategies that work together, are less complex and will deliver the consumer and environmental benefits that we all know lie ahead.”

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Due to ongoing COVID-19 restrictions, the Australian Automotive Dealer Association (AADA) has decided to reschedule the “2021 Future Focused” Convention & Expo to 8-9 March 2022.

The COVID-19 pandemic has played havoc with every aspect of life and made it impossible to make plans reliably. The AADA Dealer Convention and Expo has certainly been no exception, but we are hopeful, that by March 2022 restrictions will have eased enough to allow freedom of movement in Australia.

Whilst our planning for the AADA Convention & Expo provides for virtual attendance, our commitment is to deliver a fully engaged on-site event. Feedback from our Dealer membership and Allied partners indicates clearly that this is their wish also.

Today, our industry faces many challenges on key policy and business fronts. We believe that the true strength and appeal of the AADA Convention & Expo is that it brings Dealers and allied industry partners together, in the flesh to listen, discuss and debate solutions and strategies which will drive our industry forward.

It is our belief that the rescheduled dates provide us the necessary time to minimise future risk and ensure that our industry can get together at a great event in March 2022.

Event Details

AADA Convention & Expo

Dates:               Tuesday 8 March & Wednesday 9 March 2022

Venue:              Brisbane Convention & Exhibition Centre

Website:           www.aadaconvention.com.au

 

Contact:

Patrick Tessier OAM

M: Patrick@aadaconvention.com.au

P: 0412 685 857

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The peak body representing franchised new car Dealers applauds the release of proposed legislation to expand unfair contract term (UCT) protections.

After extensive consultation, the Government released an Exposure Draft Bill which, among other changes, increases the eligibility threshold for the protections from businesses employing less than 20 employees to those employing less than 100 employees.

“This is another step forward for Australia’s new car Dealers and if this proposal becomes law, many Dealer Groups in rural and regional areas as well as stand-alone franchises will benefit from these protections,” said AADA CEO James Voortman.

“Allowing more Dealers to benefit from UCT protections will hopefully see changes to Dealer Agreements which currently often contain terms which are heavily skewed in favour of their car Manufacturer franchisors,” he said.

“We hope that these changes together with recent changes made to Australia’s automotive franchising regime and the protections that already exist for Dealers in New South Wales will see fairer Dealer Agreements start to become the norm,” Mr Voortman said.

“The AADA will continue to pursue the extension of these protections to all franchised new car Dealers due to disparity in size between Dealers and the large car Manufacturers to which they are franchised,” he said.

“Australian car Dealers desperately want strong and respectful relationships with their Manufacturers characterised by agreements which are fair and reasonable,” he said.

“We would like to thank the Assistant Treasurer Michael Sukkar for driving these reforms. It is also important to thank ACCC Chairman Rod Sims, who has consistently advocated for these protections to be extended,” Mr Voortman said.

“These changes will empower Dealers to continue employing Australians, investing in Australia, supporting Australian communities and paying their taxes in Australia,” he said.

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