The MTAA, PO Box 6298, Kingston, ACT, 2604

t:  +61 2 5100 8239
e:  admin@mtaa.com.au

Press Releases

Mtaa welcomes the implementation of franchising reforms to better protect new car retailers and consumers

The Motor Trades Association of Australia (MTAA) today welcomed the announcement by Industry Minister Karen Andrews that new regulations for new car franchised motor dealers will come into operation from next Monday 1 June 2020.

The introduction of a separate schedule for new car retailers to the Franchising Code of Conduct will assist in addressing a power imbalance between car manufacturers and dealers and provide better protections for these critical automotive businesses and consumers.

MTAA welcomes the commitment and work of the Government and congratulates Industry Minister Karen Andrews and her Department in achieving this outcome.

MTAA CEO Richard Dudley said the regulations are significant and will contribute to addressing significant problems being experienced by new car retailing franchisees in the areas of capital expenditure requirements, adequate time to secure returns on substantial investments, better clarity and protections for end of franchise obligations and improved resolution mechanisms for disputes.

Read more ...

General Motors must negotiate and compensate in good faith for the long term

Over the past 48 hours 8300+ employees including 555 apprentices at 185 franchised General Motors Holden dealers nationwide have been digesting the General Motors Holden GMH Detroit decision to cease production of right-hand cars and vacate the Australian and New Zealand new car market.

Many communities across Australia are also considering the implications and impact of a decision made half a world away - especially in regional and rural Australia where the dealers are prominent local businesses, a major employer and an important part of their respective communities through sponsorship, assistance and social welfare initiatives.

The Motor Trades Association of Australia’s (MTAA) state and territory Motor Trade Associations and Automobile Chamber of Commerce members have been reaching out to their Holden dealer constituents across Australia to gauge needs, concerns and impacts. MTAA has already discussed the decision and implications with the office of Federal Industry Minister Karen Andrews and will make further representations at a preplanned automotive industry roundtable Friday this week scheduled to discuss long awaited franchising reforms. MTAA will as part of its decade plus pursuit of these reforms continue to impress the need for car manufacturer franchisors to be held to account for product warranty service and repair obligations as key to addressing significant power imbalances in some manufacturer - dealer relationships.

Read more ...

MTAA welcomes franchising reforms to better protect new car retailers and consumers

The Motor Trades Association of Australia (MTAA) today welcomed reforms announced by the Commonwealth Government to address a power imbalance between car manufacturers and new car dealers that will better protect automotive small businesses and consumers.

The reforms announced by Industry Minister Karen Andrews and Employment and Small Business Minister Michaelia Cash will see the introduction of specific regulations as part of a revitalised Franchising Code of Conduct with a penalty regime for breaches.

MTAA CEO Richard Dudley said the regulations released for final consultation today are significant and will go a long way to addressing significant problems experienced by new car retailing franchisees in the areas of capital expenditure requirements, adequate time to secure returns on substantial investments, better clarity and protections for end of franchise obligations and improved resolution mechanisms for disputes.

Read more ...