Sean Hanley

TOYOTA Australia has no plans to follow the Japanese brand’s move in New Zealand where dealers are now acting as agents for the sale of its new vehicles.

Implemented on April 1, the New Zealand arrangement involves Toyota owning, and holding, the stock and supplying its retailers with the vehicle – with a fee for service – once a purchase is made.

As GoAutoNews Premium has reported, this eliminates the need for dealers to buy and hold stock from Toyota and then sell the vehicles to customers – hopefully at a profit – under the normal franchise business model.

Among other benefits, the new arrangement removes the freight costs involved in swapping stock between dealerships, while the pressure associated with high-volume targets and incentive bonuses should also now be removed.

In an interview with GoAuto last week, Toyota Australia vice-president of sales and marketing Sean Hanley said the company had closely monitored the New Zealand agency model but categorically ruled it out for Australia.

“There is no plan for Toyota Australia to establish a dealer agency model at all,” he said.

“We watch very carefully the developments in New Zealand. Their market is very different to ours, and they’re progressing very nicely over there with their agency model.

“Of course, we look at it in its entirely, and then we look at aspects of it that potentially we could adopt in Australia, but actually we have no plan at all – at all, I make this very clear – to establish an agency model with our dealer network.

“Our market is very different. Our geography is very different.”

Asked to nominate the key differences between the two markets, Mr Hanley said: “New Zealand obviously has a very significant used-car market, which is quite different to Australia’s marketplace, and just their geography is different.

“Our operation over there is very successful, it’s run by a very strong visionary leader (Alistair Davis), he does a marvellous job, and we work with them all the time.

“But that particular model, in its entirety, just wouldn’t be suitable for the Australian market.”

Mr Hanley added that Toyota Australia continually reinforced to its franchised dealers that they are a big part of its future, despite a changing landscape that includes the emergence of new mobility services.

“We see having 280-odd dealer sites around the country for Toyota as our core strength because they will be able to service any mobility solution that we develop, whatever they may be,” he said.

“That’s a big core strength of Toyota going forward.
“Our dealers are important to us. They are part of our future, and we’re forever grateful, on the Toyota side, of the job they do representing our brand, every day of the week.”

By Terry Martin