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OEMs vs dealers over govt code call
GoAuto News, Sandringham  by Neil Dowling
22 Sep 2021
General News - Page 26 - 209 words - ID 1507636810 - Photo: Yes - Type: News Item - Size: 236.00cm2

OEMs and dealers argue as VACC wants motorcycle, agriculture and others on board

AS EXPECTED, there were always going to be differences of opinion in the responses to calls by the federal government for further changes to the automotive franchising discussion paper.

The discussion paper aims to give industry the chance to expand on the reforms in the "Competition and Consumer (Industry Codes Franchising) Amendment (New Vehicle Dealership Agreements) Regulations 2020 Part 5 and Part 6" (the Code) that became active on July 1, 2021.

In the red corner, representing the OEMs, the Federal Chamber of Automotive Industries (FCAI) said it was reiterating its call for Australian car buyers to be the focus for the government in any considerations to make further changes to automotive franchising.

It wants no further changes and believes a stand-alone franchising code for the automotive retail sector was "not needed and if introduced would lead to significant costs to industry and ultimately the consumer".

In the blue corner, representing the dealers nationally, the Australian Automotive Dealers Association (AADA) indicated it was at loss with the FCAI view.

AADA CEO James Voortman said: "This is all about fair and reasonable protections for Australian businesses who are in commercial relationships with very large offshore manufacturers."

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