There will be a more balanced relationship between car dealers and manufacturers if Labor reclaims power at the next election, the party says.
Shadow assistant treasurer Andrew Leigh told dealers at the Australian Automotive Dealer Association (AADA) Convention and Expo that a Labor government would introduce an industry-specific code making rules about contract terms between the two parties clearer.
“It is the manufacturers that generally write the terms of dealership agreements that cover consumer responsibilities,” he told the convention being held on the Gold Coast.
“Dealers are under pressure to agree, for threat their agreement may not be renewed.”
A code would provide balance to the relationship between manufacturers and dealers, Leigh says.
“This will give dealerships real backup, regulatory muscle, when they’re looking to speak up for the rights of their customers.”
AADA chief executive David Blackhall told the dealer audience “not all manufacturers are equal” in the way they treat their dealership networks.
But at the same time, the AADA is not “at war” with the OEMs.
“I believe we can walk down this path together to get a good outcome.”
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