Franchised new car dealers are welcoming the announcement by the Minister for Small Business, Julie Collins MP, that a review into the franchising code of conduct is due to commence in the second half of 2023.
The review marks a significant step forward in ensuring a fair and transparent business environment for new car and truck dealers across the nation.
“The decision to conduct a comprehensive review demonstrates the government’s commitment to continually improve this vital regulatory framework,” Australian Automotive Dealer Association (AADA) chief executive James Voortman says.
“It presents an opportunity to address any existing gaps or limitations in the current code, ensuring it remains relevant and effective in the rapidly evolving automotive industry.
“The relationship between franchised new car and truck dealers and their manufacturers has traditionally been characterised by strong partnerships and collaboration. However, in recent years there have been several high-profile automotive franchising disputes, a number of which remain before the courts.
“As the industry undergoes a period of rapid change including the emergence of many new automotive franchisors, it is critical that our franchising regulations are fit for purpose.
“The review of the franchising code presents an opportune moment to address these evolving dynamics and ensure that the code effectively safeguards the interests of dealers and their customers now and into the future.
“Additionally, the review provides an opportunity to expand the provisions to encompass truck and other automotive franchised dealers who are currently not afforded the automotive specific protections the franchising code provides,” he says.
The AADA extends its full support to the government in undertaking this review process and looks forward to contributing to the consultation process on behalf of members when it begins.
