A promise to introduce an Automotive Code of Conduct that will regulate the relationship between OEMs and new car dealers is being welcomed by the Australian Automotive Dealer Association (AADA).
The release of the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) shows that government will develop code as part of its support for small business.
“This is excellent news for the industry and I congratulate the government for addressing the imbalance in power between franchised new car dealers and vehicle manufacturers,” said AADA chief executive David Blackhall.
“This represents significant progress and the AADA will be working closely with the government to make sure this much needed policy is implemented.
“The AADA has worked tirelessly to develop broad support for an Automotive Code of Conduct,” said Mr Blackhall.
Blackhall says it is pleasing it now has commitments from the government and the opposition as well as support from the Small Business and Family Enterprise Ombudsman, the Franchising Council of Australia and other industry bodies to get a code introduced.
