Push for more competitive new car market

By John Mac, December 20, 2018

Vehicle companies and new car traders are requested to assess the Australian authorities thoughts for bettering their affiliation, within an effort to produce the nation’s new automobile market a lot more competitive.
Requiring big producers to provide traders at 12 months see when they’ll not be renewing a trader contract is just one of suggestions contained in a newspaper released for consultation on Thursday.

The step comes after a 2017 study from the Australian Competition and Consumer Commission discovered an energy imbalance among large-car producers and new car dealers was instills contest.

Marketplace Minister Karen Andrews said the business produces a significant contribution to the economy and the government would like to keep it competitive.
Generating manufacturers give dealers more notice if they won’t be working together with them again and describing their additionally among thoughts being contemplated.

The newly-released newspaper considers whether dealers and vehicle producers needs to be governed by an exclusive code, so rather than the Franchising Code which they fall under.
Nearly $63 billion in revenue was generated in the industry last calendar year, with 1.2 million cars sold throughout 3500 outlets that utilized 67,000 folks.

“We would like to learn how we are able to best support car dealers and manufacturers to flourish from the changing industry environment, guaranteeing long-term business growth,” Ms Andrews said on Thursday.