The Morrison Government has announced that it intends to implement a range of reforms to automotive franchising arrangements.

In a joint media release with Senator the Hon Michaelia Cash, Minister Karen Andrews said the reforms will facilitate more transparent and cooperative operations for new car retailing.

The proposed changes will provide a balance between vehicle manufacturers and the dealer networks via a separate Automotive Code of Conduct, or similar protections for the retailers, enshrined in a schedule to the existing Franchising Code.

The release indicates a range of reforms to automotive franchising to be considered which is very positive, after significant public consultation outlining strong concerns from new car dealers about the need for a level playing field for all operators, from large dealerships to small family businesses.

“The Australian Automotive Dealer Association (AADA) issued a media release yesterday, which welcomes the commitment, and outlines their desire to work with the government on implementing the reforms,” said Dr Brett Dale, Group CEO for the Motor Trades Association of Queensland. “We strongly support AADA’s position and look forward to more detail in relation to the mechanism for the reforms and associated timelines.

“It is a strong sign of progress from the government that they intend on providing specific protections for franchised new car dealers, which will result in a fairer system for consumers, dealers and manufacturers.”

Original source: Motor Trader Magazine (September 2019)

11 Sept 2019