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The Advertiser
22-07-2025
- Automotive
- The Advertiser
China set to dominate Aussie vehicle import market
More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase. More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase. More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase. More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase.
Perth Now
22-07-2025
- Automotive
- Perth Now
China set to dominate Aussie vehicle import market
More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase.
Perth Now
09-07-2025
- Automotive
- Perth Now
Australian car dealers lose again as court rules in favour of Mercedes-Benz
The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's 'bitterly disappointed' by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Supplied Credit: CarExpert It's pushing for the Federal Government to introduce additional protections for automotive franchisees 'so that the blueprint created by this court decision is not used by others'. 'We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia,' said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. 'Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector,' said AADA CEO James Voortman. Supplied Credit: CarExpert 'In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. 'The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. 'Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. 'It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices.' The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. Supplied Credit: CarExpert At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz
7NEWS
09-07-2025
- Automotive
- 7NEWS
Australian car dealers lose again as court rules in favour of Mercedes-Benz
The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's 'bitterly disappointed' by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees 'so that the blueprint created by this court decision is not used by others'. 'We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia,' said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. 'Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector,' said AADA CEO James Voortman. 'In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. 'The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. 'Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. 'It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices.' The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023.
The Advertiser
09-07-2025
- Automotive
- The Advertiser
Australian car dealers lose again as court rules in favour of Mercedes-Benz
The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from: The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from: The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from: The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from:
