In this helter-skelter world of meeting demanding factory targets and surviving on bonuses, the month can slip by very quickly. As a result, dealers now spend too much of their time just working in their businesses and not enough time working on their businesses.

That is dangerous to their financial health.

Dealers need to be fully acquainted with what the regulators want from them and how the people dealers pay to represent them are dealing with the bureaucrats and politicians to ensure that their interests are soundly stated.

That is why, at this year’s AADA Convention on Wednesday September 7, there is to be a symposium for dealers in which those at the pointy end of representing dealer interests – the industries’ advocates – are to going sit on a panel to spell out the nature of the challenges coming retailers’ way, what they are doing about it and what progress they are making.

Hosted by me as an interlocutor, the panel consists of Australian Automotive Dealer Association (AADA) chairman Terry Keating, AADA CEO David Blackhall, Federal Chamber of Automotive Industries (FCAI) CEO Tony Weber and Australian Motor Dealer Council chairman Doug Dixon.

The aim of the panel discussion is to flush out the nature of the threats faced by car retailers and how these can be best addressed – including what dealers themselves can do to protect their interests.

Central to the discussion will be whether there is any sound factual basis for moving against dealers in various areas or whether the bureaucrats and politicians are simply acting on perceptions.

A key plank to the discussion will be what is being done about the “Vital Five” issues facing dealers.

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These are:

One: The ASIC review of flex commissions and origination fees

ASIC has taken the view that dealers selling finance have a conflict of interest in that the higher the interest rate charged on the loan the more commission income flows into the dealership. The importance of this issue cannot be overstated as many dealerships could not continue in business without this income.

Two: Personal imports

The panel will deal with the nature of the threat of personal imports to dealerships and factories and why this has become an issue in the first place. GoAuto has already established, by conducting conclusive price comparisons that are not subject to the variations of the currency market, that this is a solution looking for a problem. However, it remains to be resolved politically.

Three: Review of access to the Service and Repair Information Agreement

This festering sore looked to have been solved by an agreement between the parties, but it will not go away because of an agenda driven by the Australian Automotive Aftermarket Association (AAAA) which seems to be more interested in flooding Australia with copied Chinese spare parts fitted by independent workshops. The panel will discuss the status of this issue in the aftermath of the election in view of the change of the minister responsible.

Four: ACCC market study of new car retailing

This ACCC review came out of the blue coincidentally with the strong campaign being waged by dealers against the adoption of parallel imports – something the ACCC strongly supports.  Interestingly, the “high number’ of consumer complaints which the ACCC said justified the review have not been made available. Nevertheless, the ACCC’s action provides the basis for lively debate.

Five: Australian consumer law review

This 12-month long review, among other things, takes in “lemon laws”, unfair contracts and price transparency. The FCAI and AADA are working together on this and the panel will be able to report on the thinking that is driving action in these areas and how the industry might react.
The relationship between the car factories and their dealers is also guaranteed to be examined.

Comment by John Mellor

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