AADA CEO James Voortman told GoAutoNews Premium that it was monitoring the new regulations introduced in 2021 and assessing compliance as dealer agreements signed or renewed after July 2021 start to become captured by the new regulations.
He said that the judgement in the federal court case between Mercedes-Benz “and most of its dealer network is due to be handed down and will inform our advocacy strategy moving forward.”
Mr Voortman said that the AADA was also actively asking the federal government to widen the scope of the 2021 protections to include truck dealers and other relevant automotive retail businesses, with attention also to pursue unfair contract term protections for all franchisees.
“We are working with other industry associations and the small and family business ombudsman to try and implement the memorandum of understanding agreed to by the AADA, the FCAI and the MTAA,” he said.
James Voortman
The year will be a busy one for the AADA. Mr Voortman said other issues include the EV strategy and how it impacts on dealers; dealer indemnification; dealer licensing laws; and the skills and training position and remedies.
EVs: Mr Voortman said the federal government’s main priority in the automotive space this year will be delivering its Electric Vehicle Strategy.
“The main element of the strategy will be the development of a fuel efficiency standard and we expect much of 2023 to be consumed with consultations on such a standard,” he said.
“Naturally other EV initiatives such as incentives and charging infrastructure will be discussed and debated at both state and federal levels of government.”
“There are also implications for dealers in terms of certain franchising aspects of the business and we will be supporting our members on issues such as OEMs changing aspects of the distribution arrangements; requiring capital investment for charging infrastructure; and other franchising compliance requirements.”
Mr Voortman said that the move to EVs will also have tax implications and AADA will continue to advocate for a review of all taxes on vehicles, removal of import tariffs and phase out of the luxury car tax.
“Future reductions in collection of fuel excise should be considered now before we face a significant drop off in much needed revenue,” he said.
“Electrification brings with it software-designed vehicles and enhanced ability to communicate and transmit data 24/7.”
“AADA is considering the implications for dealers and consumers of access to connected car data.”
“It would appear to be a practical necessity for dealers to have access to all connected car data for the purpose of servicing, accessory sales, service retention and customer satisfaction.”
“The AADA is concerned that dealers are included and not excluded.”
Indemnification and Consumer Protection: Mr Voortman said that this remained a key issue for dealers.
“Improving the dealer indemnification is not only key to protecting dealers from financial harm, but also to improving the customer experience,” he said.
“The government is yet to respond to the consultation it undertook in December 2021, in which it outlined a range of policy options.
“This year, the AADA will also be trying to seek clarity on whether the obligation to honour consumer guarantees applies to agency agreements in the same way it applies to dealer agreements and whether that presents risks to the right to indemnification.”
He said that consumer issues continue to emerge and regulators at both the state and federal levels are closely watching the automotive industry.
“The government is yet to respond to a Productivity Commission report which made a number of recommendations related to consumer law, including the need for automotive ombudsman offices, enabling super complaints and developing a product labelling scheme,” he said.
“We are closely watching the government on the ‘point of sale’ exemption and any moves to change the current system by which dealers facilitate finance.”
Dealer Licensing Laws: Mr Voortman said that as the automotive industry changes, the AADA had seen state authorities examine their dealer licensing laws.
“NSW recently went through such a process and many elements related to online selling and consumer protections were considered,” he said.
“The AADA worked closely with the NSW government and the MTA NSW on ensuring a good outcome and this is something we would like to replicate as other state and territory governments consider the need to amend their licensing laws.”
Skills and Training: Mr Voortman said that the lack of skilled staff remained a significant problem for many dealers.
“We have been feeding into the government’s jobs white paper as well as the skills priority surveys,” he said.
“We will keep pushing the government to address this strategy through a combination of better training and making use of skilled migration.”
The AADA will focus on several priorities this year. Mr Voortman said that these were the main priorities for 2023 although he said that these “will undoubtedly change and others will emerge over the next 12 months.”
Mr Voortman said that AADA’s single goal is to “ensure the prosperity of the Australian automotive retail industry and the many people it employs”.
By Neil Dowling
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