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LAST year could arguably be said to have presented car retailers with the most changed circumstances ever seen in the auto industry with the fallout from Holden’s withdrawal, Honda and Mercedes-Benz moves into agency sales, a Senate inquiry, Government response with new rules, and a stock shortage that has led to record increases in used car prices and strong dealer margins.

The Australian Automotive Dealer Association (AADA) spent the year riding shotgun on all of these issues and at the invitation of GoAutoNews Premium we have been asked to outline our advocacy plans for the auto retail community for 2022. 

James Voortman

Here Goes:

Franchise Policy


It is going to be an important year for Franchising Policy. 

The Government will likely announce its decision on how to structure dealer protections in the future, through the current Franchising Code or through a stand-alone code. 

The Government will also decide whether to extend automotive franchising protections to truck, farm machinery and motorcycle dealers. 

We also expect guidance from the Government on how to improve dispute resolution between dealers and OEMs and the AADA will continue to explore options to allow for better dispute resolution so that dealers and OEMs have options to settle their disputes in a timely and cost-effective manner.

We are also hoping that Unfair Contract Term protections will be expanded and legislated this year. At a practical level, many dealer councils are working with their brands to ensure that any new dealer agreements comply with the regulations introduced on July 1 last year and AADA will be supporting those councils in any way we can. 

The Mercedes-Benz case is due in August and will be a key focus for the industry as will other disputes before the courts including those between dealers and brands such as Honda and GM-Holden. 

Skills


Skills shortages will be a big issue in 2022 as it was in 2021. This is a major problem for almost every dealer and the AADA will be pushing for the return of skilled migrants as soon as possible. 

We will be asking the Government to consider ways to make Australia more attractive to skilled migrants because we will be facing competition from many other countries for scarce labour. 

This year we will also be looking internally and trying to determine some of the root causes for the ongoing skills shortage in our industry.  

Australian Consumer Law reform


The AADA will be fully engaged in the Government’s consultation on changes to the Australian Consumer Law (ACL). 

The Government has identified the introduction of civil penalties for suppliers that do not honour consumer guarantees. The AADA will be pushing back against this proposal given the difficulties dealers face in being caught between the OEM and the customer on these issues.

The Government is also suggesting penalties for OEMS who do not compensate their dealers for ACL remedies and suggesting penalties for OEMs who take retribution against dealers who have requested indemnification. 

The AADA will be more supportive of these proposals to strengthen the right of indemnification.

We are also eagerly awaiting the Government’s response to the Productivity Commission’s report into Right to Repair, which made several recommendations in relation to consumer policy.  

 

Tax and budget policy


We continue to call for abolition or reform of the Luxury Car Tax (LCT), removal of import tariffs and a rationalisation of vehicle stamp duties. 

We will also be calling on the Government to continue investment incentives such as the instant expensing and the instant asset write off.

Low emissions vehicle policy


Our main goal here is to try to convince the Federal Government to play a leadership role so that states and territories can get on the same page in relation to EVs and other low emissions vehicles. 

We also need the Government to focus on the implications EVs have for skills, the electricity grid, emergency services, and so on.

Legislation on sharing of service and repair information


The legislation takes effect on 1 July 2022, so AADA will spend the first half of the year working with the other industry bodies to ensure appropriate structures are in place for the scheme to take effect. 

We will naturally spend the second half of the year monitoring the implementation of the scheme and ensuring that it functions fair and reasonably.

 

Finance and insurance


We hope there will be less intervention from ASIC this year as the industry comes to terms with the changes that were introduced in October last year.

 

James Voortman is the CEO of the Australian Automotive Dealer Association

By James Voortman

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