The estimate of job losses at car retailers around the country is based on federal government projections that 30,000 new cars would be allowed into the country under the government’s parallel import proposals which are backed by the Australian Competition and Consumer Commission (ACCC).
However, the 30,000 cars are unlikely to expand sales, rather they are more likely to be taken away from the existing Australian market.
The managing director of major automotive retail company, Alto Group, Anthony Altomonte, said the importation of these cars would replace sales made by Australian dealers and would mimic the collapse of the New Zealand car industry, causing job losses.
“New-car sales in New Zealand are now back to the levels they were before the country introduced the importation of cars,” said Mr Altomonte who is also a director of the Australian Automobile Dealer Association (AADA).
“That has taken 12 years to recover and the fear is the same will happen here.”
Mr Altomonte said he estimated that allowing 30,000 new-car imports into Australia – as stated by the minister for major projects, territories and local government Paul Fletcher on February 10 this year – from right-hand-drive countries such as Japan and the United Kingdom would directly result in the loss of 1500 jobs in the industry.
GoAutoNews Premium sales and price data shows that 89,749 cars and SUVs valued at $70,000 and above were sold in 2015.
“The cars will be prestige models because they are the ones where the greatest savings may be made,” he said.
“In 2015, Australia sold about 100,000 prestige cars. That (Paul Fletcher’s estimate) means one-third of new-car sales would be lost to overseas companies.”
Mr Altomonte said the effect would lead to cost-savings in Australia and that means reduced capital expenditure by dealerships and reduced staff numbers.
“If we lose 30,000 cars a year to imports and that means we would have to get rid of 300 sales people, based on each selling 100 cars a year each,” he said.
“We have one yard person for every five sales staff. That is 60 people we would no longer need.
“One staff member is needed to handle pre-delivery of cars. One staff member does 300 cars a year, so that’s 100 pre-delivery people we wouldn’t need.
“The 30,000 cars that come in outside the new and used-car system would not be serviced by existing dealers because they are not the same cars on which the technicians are trained.
“The parts are also different and we would not be able to supply those.
Mr Altomonte estimated the number of people that would be impacted and said it would ultimately hurt Australian consumers.
“I estimate 325 technicians and apprentices would be dismissed, along with 150 parts personnel.
“Our finance staff work on the ratio of one employee per 50 cars. That’s another 75 staff gone.
“Then there’s the support and administration staff. I estimate 40 would lose their jobs.
Warning: Australia will follow New Zealand into retrenchments for retail car industry workers
“We have our own trucks and I estimate 30 drivers would go. We also could lose 100 accessory fitters.
“One dealership manager looks after 10 staff. So 100 managers would not be needed.
“That adds up to 1200. Plus, I am being very conservative on these numbers so I have added in another quarter to allow for the sub-contractors involved in wheel alignments, exhaust fitters, tyre fitters, window tinters and so on.
“That’s 1500 people that will lose their jobs if the federal government goes ahead and introduces parallel imports.
“This simple proposal will hurt so many Australians.
“It could mean the closure of up to one third of our prestige-car dealers. But for what?
Mr Altomonte called on dealers to make a stand at this year’s federal election to make their voices heard.
“We have heard nothing from the federal government about why they’re doing this to us.
“This is an election year. This is the time to show that this proposal can’t go ahead. It’s very ill-conceived,” Mr Altomonte said.
“The AADA is encouraging all car dealers to see their local member of parliament. The MPs will have to know that there will definitely be jobs lost if we allow the parallel importation of new cars.”
Mr Altomonte said he believes that the new-car parallel import proposal is only the thin edge of the wedge.
“Much more is coming once that goes through. It will open the floodgates to used cars – old and unsafe cars with poor emissions – coming in from Japan,” he said.
“These are the cars that Japan won’t have on their own roads because they’re unsafe and pollute.
“And the federal government wants to see them on Australian roads, to be used by their voters.”
By Neil Dowling
