Aada Achieves Momentous Franchising Reforms
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OFFICIAL PUBLICATION OF AADA | APRIL 2021 | ISSUE 34 AADA ACHIEVES MOMENTOUS FRANCHISING REFORMS CAR BUYERS STILL FAVOUR DEALER MODEL: SURVEY THE YEAR OF REFORM FOR THE AUTOMOTIVE INDUSTRY AADA CONVENTION 2021: ONSITE, LIVE AND ON-DEMAND www.automotivedealer.com.au PRINT POST 100019106 It all starts with spirit. MTAA Super and Tasplan have merged to become Spirit Super. Spirit Super provides quality, customised service across Australia and secures better retirement outcomes for members. Our scale will deliver improved products and services, low fees and a focus on competitive investment returns. Visit spiritsuper.com.au Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238718) is the trustee of Spirit Super (ABN 74 559 365 913) and issues interests in Spirit Super. You should consider the Product disclosure statement (Member guide) available at spiritsuper.com.au or by calling 1800 005 166 before deciding if the fund is appropriate for you. 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WELCOME Australian Automotive Dealer Association CONTENTS ISSUE 34 | APRIL 2021 WELCOME From The AADA Chairman .................................................................................................... 4 From The AADA CEO ............................................................................................................. 4 CONTACT AADA PO Box 4409, POLICY Kingston ACT 2604 AADA Achieves Momentous Franchising Reforms ............................................................ 5 CONTACT AUTOMOTIVE DEALER 936B Glenhuntly Rd, Senate Committee Urges ACCC To Expedite Holden Probe ............................................. 7 Caulfield South, VIC 3162 Service And Repair Sharing Legislation Introduced ........................................................... 8 Issue No. 34 | APRIL 2021 PUBLISHER: AADA Car Buyers Still Favour Dealer Model: Survey .................................................................... 9 MANAGING EDITOR: Luke Prendergast ASIC Releases Deferred Sales Model Guide ..................................................................... 12 PRODUCTION MANAGER: Stace Agombar The Year Of Reform For The Automotive Industry ............................................................ 13 CREATIVE DIRECTOR: Nick Murphy ADVERTISING MANAGER: Geoff Vine Government Reforms Drive Dealers Towards A Fairer Future ...................................... 14 [email protected] Mobile: 0408 189 295 AADA 2021 CONVENTION: ONSITE, LIVE AND ON-DEMAND Phone (03) 9576 9944 | Fax (03) 9576 7277 Join Us In Brisbane For AADA2021 Future Focused ........................................................ 21 AUTOMOTIVE DEALER DELIVERY/CHANGE OF ADDRESS Meet Your New Convention Host David Speers ................................................................ 22 (03) 9576 9944 or [email protected] Dealership Of Tomorrow Update ........................................................................................ 23 EDITORIAL [email protected] Build Your Millennial Workforce With Jared Hamilton .................................................... 23 EDITORIAL & ADVERTISING OFFICE Deloitte’s Industry Overview & Economic Outlook ........................................................... 24 936B Glenhuntly Rd, Caulfield South, VIC 3162 Service Management Structures That Increase Returns ................................................ 24 Be Part Of Our Onsite And Virtual Expo And Workshops ................................................. 25 FEATURES Digital Focus Of NADA Show ............................................................................................... 16 No responsibility is accepted by the publisher for the accuracy of information contained Dealership Of Tomorrow (DOT): 2021 Update ................................................................... 18 in advertisements in the Automotive Dealer magazine. Publication of any advertisement does not constitute endorsement by the publisher Deloitte Releases Consumer Study Findings .................................................................... 27 of any product, nor warrant its suitability. Advertisements are published as submitted by advertisers. “I Shall Be Released..." ........................................................................................................ 29 COPYRIGHT No part of this magazine may be reproduced Your Service Department In 2030 ....................................................................................... 32 without the publisher’s written permission. CONTRIBUTORS How Close Are We To ‘Click And Buy’? .............................................................................. 34 The views expressed in Automotive Dealer by external contributors and advertisers are not Do We Need A Motor Show? ............................................................................................... 35 necessarily those of AADA. Use The Football Playbook To Run A Great Dealership ................................................... 37 AUSTRALIAN @AADA_ASN AUTOMOTIVE DEALER ASSOCIATION Convenience Is King – And Today That Literally Means At The Touch Of A Finger. ...... 39 WE’D LIKE TO HEAR FROM YOU. We’d like to hear from you about what’s been supporting junior sporting clubs or sponsoring a It’s a pity that the community work being done happening at your dealership that you think charity event. by Dealers is a well-kept secret. We intend to could be worth passing on to our readers. change that. AADA is determined to generate a We would like to know. greater respect for new car franchise Dealers It can be anything from a unique sale, a fleet as compassionate business people. Part of our deal or a story about a member of your staff who Whatever the story you have, it will be good strategy is to remind the media, politicians and recently accomplished a notable feat. reading. Send us the information and key contact details and we will follow it up. If you opinion makers that, by employing over 66,000 It could be a ‘feel good’ community initiative have photographs of the endeavour so much people, AADA members make a substantial you have undertaken involving local schools, the better. contribution to the Australian economy. WELCOME Australian Automotive Dealer Association FROM THE AADA CHAIRMAN Terry Keating AADA Chairman hen David Blackhall stepped into After four long years, unimaginable We expect all current agreements on foot as the role of CEO of AADA in 2016, roadblocks, and in some cases disingenuous at 30 June 2021 will be covered by the new Whe worked with the Board to map support, we have had a code of principles regulations. out a plan to address our greatest weakness as announced by our Prime Minister and the new automotive Dealers, that was our lack of scale Minister who took control of the particular Sadly, of course, this all came too late for nearly against the power of some recalcitrant auto ministerial portfolio just a few weeks ago, the 200 Holden Dealers and their staff. However, makers. Hon Michaela Cash. this Code should ensure that if a Holden Mark II occurs in the future, reasonable protections It seemed at the time a reasonable proposition The Code is mandatory, embraces any are mandated. that poor behaviour on both sides should arrangements which seek to circumvent the be subject to redress. Internally, we felt that Code (e.g. the so-called agency model), carries On behalf of all of our members I congratulate if we achieved nothing else we had to have heavy penalties for non-compliance and will our Secretariat, both current and past an insurance policy for dealership balance become law on 1 July this year. members on achieving this outcome. sheets, most of which have been built up over Well may we say on 1 July - ‘Happy New Year’. decades. Our blueprint for a code required that outcome. FROM THE AADA CEO James Voortman AADA CEO n 12 March the Prime Minister made It’s worth making special mention of the Dealer councils. Some put in submissions, an incredibly important announcement AADA Board who about four years ago (well came to Canberra to visit Ministers or Ofor new car Dealers across Australia. before the Holden withdrawal and the moves participated in Senate inquiries. Members The announcement centred around the by Mercedes and Honda to agency) directed from large, medium and small dealerships all franchising protections Dealers had been the secretariat to make this the number one played their part. Members from our capital calling for over many years, but particularly advocacy priority. We also need to mention cities and our country towns got stuck in. over the past five years. my predecessor David Blackhall who took the initial lead on pursuing this matter and used It was a combined effort by so many. The details of the announcement can be his exceptional skills of persuasion to put this In the end the message got through to the examined in more detail here, but in a nutshell squarely on the agenda of both major parties decision makers in Canberra. Our industry they represent the most important regulatory and the ACCC. changes affecting the relationship between and the social and economic contribution Dealers and OEMs.