AADA calls on Government assistance for struggling dealerships
Following the release of February’s new vehicles sales figures where a 8.2 per cent decline in sales was recorded, peak bodies in the automotive sector have come together to urge the Government to assist the depleted industry by injecting a much-needed stimulus package.
Following a disappointing 2019 where new car sales declined by 7.8 per cent for the year, catastrophic weather conditions followed by the ongoing threat of COVID-19 has seen those poor results continue into 2020.
This has led to many new car dealerships around the country being forced to lay-off staff, or in some case, shut-down entirely.
Looking to protect the 3,200 new car dealerships in Australia from further cuts, the Australian Automotive Dealer Association (AADA) is leading the charge in requesting help from the Government.
“Make no mistake, this is an industry in urgent need of assistance. Many dealerships are at breaking point and if the situations persists, there will be severe consequences for these businesses and the people they employ,” said Australian Automotive Dealer Association CEO James Voortman.
“We are calling on both the Federal and State Governments to stimulate this industry which has been going backwards and now faces further tough times amid this market uncertainty.”
AADA’s concerns have been mirrored by the Federal Chamber of Automotive Industries, with CEO Tony Weber saying the industry is facing the toughest conditions he can remember.
“The industry is in the midst of a prolonged downturn. Sales of new cars have contracted for 23 straight months representing a sustained recession and a situation significantly worse than the GFC which saw 15 months of decline,” said Weber.
AADA has outlined numerous options for stimulus to be considered by Government stakeholders, including:
- Rebates for the purchase of new cars
- Tax relief for new car buyers (GST, import tariffs, Luxury Car Tax)
- Investment incentives for businesses buying new cars
Source: Australian Automotive Dealer Association | The Automotive Industry is already in Recession and needs Urgent Stimulus
10 March 2020
