The Federal Chamber of Automotive Industries (FCAI) acknowledges the Federal Government’s response to the Independent Review of the Franchising Code of Conduct, conducted by Dr Michael Schaper, in which it has agreed or agreed in principle with all 23 recommendations.
The FCAI was pleased to participate in the review and notes Dr Schaper’s view that the Code is generally fit for purpose, and that Part 5 of the Code relating to new vehicle dealerships is operating as intended and not producing any unintended consequences.
The FCAI also welcomed Dr Schaper’s finding that the sector requires some respite from a constant process of review. The FCAI was also pleased to note Dr Schaper’s observation that no sector recommended that Part 5 be removed from the Code and that it now appeared to be part of the regulatory framework.
The FCAI notes Dr Schaper’s recommendation that service and repair work conducted by motor vehicle dealerships be captured in the Code. Given the variety of service and repair models operating in the sector, the FCAI looks forward to the further consultation process flagged by Government to enable its continued contribution to the ongoing regulatory oversight of automotive franchise arrangements.
As the automotive industry evolves, the FCAI will continue to advocate for the interests of members, Australian consumers, and promoting fair and transparent business practices. The FCAI looks forward to working closely with Government on implementing these recommendations and taking part in future consultations.