The Motor Trades Association of Australia (MTAA) has welcomed the release of the independent review of the Franchising Code of Conduct, but says there is a critical need to develop an Automotive Industry Code.
The release of the code of conduct review led by Dr Michael Schaper came at the same time as the MTAA Board, MTA, and VACC chief executives met with Ministers, Shadow Ministers, and MPs in Parliament House in Canberra.
MTAA chief executive Matt Hobbs says Dr Schaper’s review of the Franchising Code of Conduct comes at a pivotal moment for Australia’s automotive industry.
“The review helps further the conversation and following the Federal Government’s proposed Fuel Efficiency Standard, the importance of meaningful automotive franchising reform to protect Australian businesses from the proven power imbalances found in the industry, is critical,” Hobbs says.
“Dr Schaper’s review is a solid document, and we welcome the Service and repair work should be explicitly captured by the Code. It is important to note that the Independent Review was undertaken before the release of the Government New Vehicle Emissions Standard,” he says.
“The MTAA will continue to advocate to the Government and the opposition for the critical need to develop an Automotive Industry Code to ensure a fair transition to protect locally and often family-owned dealerships that are under growing pressure from global automotive manufacturers.
“The NVES will accelerate the transition of the Australian automotive industry to more fuel-efficient vehicles. It is well known that not all global car companies will be able to respond at the same rate across the world. There is a critical need to ensure that Australian businesses are supported with policies and programs that ensure a fair and just transition.
“The speed of the transition to low-emission vehicles in Australia changed gears on Sunday. The Government needs to ensure that the final legislated New Vehicle Efficiency Standard is supported by a suite of transition policies including an automotive industry code, skills and training and support for the whole supply chain including measures that address the relationship between body repairs and insurance companies,” Hobbs says.
The MTAA provided its submission to the Schaper review in late 2023 which can be found here: https://www.mtaa.com.au/images/docs/submissions/2023/2023-MTAA-Franchising-code-review-submission.pdf
