Category: Regulation

AMENDMENTS TO THE FRANCHISING CODE TO SUPPORT DEALERS

On 1 June 2020, the Federal Government announced amendments to the Franchising Code directly aimed at better protecting the interests of new vehicle Dealers. Minister for Industry, Science and Technology, Karen Andrews, said that the amendments “balance the need to…

HYUNDAI INCREASES WARRANTY EXTENSION DUE TO COVID-19

For the second time since the COVID-19 lockdown began, Hyundai Australia has increased its warranty extension period to compensate for decreased car use. Hyundai cars that had warranties due to expire between 1 March 2020 and 31 May 2020, had…

INSTANT ASSET WRITE-OFF EXTENSION

AADA has congratulated the Federal Government for extending the expanded instant asset write-off until the end of the year. AADA CEO James Voortman said it was very welcome news for car Dealers and hoped it would help the industry recover…

AUTOMOTIVE CODE – WHAT IT SHOULD COVER AND DOESN’T!

The recent release of the Competition and Consumer (Industry Codes – Franchising) Amendment (New Vehicle Dealership Agreements) Regulations 2020 sought to address the power imbalances that exist in commercial arrangements between Dealers and distributors. Below we explain some of the…

THE COVID CREDIT SQUEEZE

While the Federal Government has sought to keep credit flowing in the Australian economy during the COVID-19 economic slowdown, individuals who would normally have no issue financing a vehicle are having their credit applications denied. AADA has heard of many…

FIVE AUTO RECOVERY MEASURES WE’D LIKE TO SEE

Along with many other industries, the retail automotive industry has taken a battering from COVID-19 shutdowns and social distancing measures. With those restrictions now beginning to ease, AADA has come up with a few strategies we’d like to see the…

GOVERNMENT JOINS DEALERS IN CALL FOR GM ARBITRATION

AADA has welcomed the Australian Government’s call for General Motors (GM) and Australia’s Holden Dealers to settle their dispute via arbitration. Several government members made statements in parliament calling out General Motors’ poor treatment of Holden Dealers, as two days…

DEALERSHIP PROTECTION AGAINST CORONAVIRUS

As the spread of COVID-19 (coronavirus) increases, and a pandemic has been declared, the motor vehicle industry is being severely affected along with all other sectors of our economy. Businesses are being required to make urgent and difficult decisions regarding…

UPDATE ON AUTOMOTIVE CODE DRAFT REGULATIONS

Australian automotive Dealers have long known the Franchising Code of Conduct (the Code) has not done enough to protect franchisees in the power imbalances that characterise franchisor-franchisee relationships. Dealers often find themselves in defenceless positions where the Code is unable…

AUTOMOTIVE CODE DRAFT DISAPPOINTING

AADA was extremely disappointed with the draft regulations released by the Federal Government to incorporate automotive industry-specific protections into a Schedule to the Franchising Code. AADA is disappointed with both the breadth of the issues covered, and by the tepid…