APE 0.76% $10.44 eagers automotive limited

If as claimed you are a 'former car industry insider' then it's...

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    If as claimed you are a 'former car industry insider' then it's odd you don't mention these welcome proposed changes by Scomo and his Federal Coalition Government that should be rather beneficial for APE:

    'The Morrison government has signalled it will introduce reforms to the Franchise Code of Conduct, including specific changes in the automotive industry, to protect both consumers and local dealers from multinational automotive corporations unfairly treating Australian stakeholders.

    The move comes in the wake of last year’s shock announcement that General Motors would be permanently abandoning the Holden brand, leaving some locally-owned small business franchises on the verge of financial ruination, and car owners worried about how they could service their vehicles in the future.

    The new measures announced today will:

    • Increase available penalties under the Franchising Code to up to $10 million. This will strengthen penalties for wilful, egregious and systemic breaches of the Franchising Code by large and profitable multinational companies.

    • Establish best practice by transforming existing voluntary principles into mandatory obligations under the Franchising Code. This will address concerns multinational manufacturers won’t follow voluntary principles.

    • Ensure that the Franchising Code keeps pace with changes to business practice by explicitly recognising that dealers operating as a manufacturer’s agent in relation to new vehicle sales are still protected by the Franchising Code.

    The Morrison Government said it would also consult on behalf of the local automotive franchising sector to ensure appropriate protections were made for automotive dealerships to protect them from unfair contract terms in their agreements with manufacturers...'

    Last edited by Hopeful9: 13/03/21
 
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