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Certainty Needed in Franchising Regulation

 The Federal Chamber of Automotive Industries will be concerned if the Federal Government introduces new regulations around franchising that damage existing relationships between car companies and their dealer networks across Australia and ultimately impact on Australian customers.

FCAI Chief Executive Tony Weber was responding to an announcement by the Prime Minister this morning regarding the potential adoption of ‘Best Practice Principles’ governing the relationship between car companies and dealers.

“Over regulation of any industry is not a solution to solving issues and forging strong, sustainable and profitable business relationships,” Mr Weber said. “This is the third major announcement regarding automotive franchising within the past year.

“In Australia, we already have extensive competition and franchising regulations. They should be allowed to work without introducing new regulations that can stifle innovation which impacts consumers and the thousands of people working in the national dealer networks.

Mr Weber said the FCAI would continue to work alongside the Federal Government on these issues to understand the details within the proposed legislation.”

“The customers must come first. Car companies and their dealers must be allowed to work together in an environment where innovation and change are allowed to flourish,” he said. “Ultimately, these are the industries that survive and prosper in a dynamic economy.”