Following the release of the new car sales figures for March where a 17.9 per cent decline in sales was recorded, the Australian Automotive Dealer Association (AADA) CEO James Voortman has warned State and Federal Governments that the worst may be yet to come.

The latest figures were the worst March result in over a decade, as consumers were driven away from showrooms by tightening social distancing and isolation rules.

Given many dealers spent much of March fulfilling orders placed earlier in the year, Voortman expects sales numbers to continue to decline unless the government steps in to assist.

“Dealers are reporting that consumer enquiry levels have dropped dramatically over the last three weeks while important fleet orders from rental car and tourist operators have dried up,” said Voortman.

“New car dealers across Australia have mostly managed to keep their doors open and service the needs of their customers, but the impact of the coronavirus will push some dealers over the edge.”

Due to their high turnover and number of employees, Voortman argued that many dealerships do not qualify for most financial assistance packages on offer from governments.

“Governments need to understand that new car Dealers operate on very low margins and turnover alone is not a metric that can be used to determine their survivability in such adverse trading conditions,” he said

Voortman has urged governments to converse with AADA when implementing stimulus packages so the industry doesn’t miss out on crucial funds needed to survive this period.

“What we are saying to government is please talk to us when designing and delivering these packages,” Voortman said.

“Dealers are big employers, pay large amounts of taxes and duties and operate as generous and upstanding corporate citizens in the communities they serve. Dealers have never asked for a handout before, but need all the help they can get now, if they are to survive.”

3 April 2020