Hello and welcome to the Southern Cross Dealership Report, your regular summary of things happening to Car Dealerships in Australia.
We've got some major dealer updates, exciting new EV pricing, and even some classic V8 drama that's going to make petrolheads very happy.

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Big Win for Australian Car Dealers

First up, some absolutely massive news for the dealer community. The federal government has committed to strengthening the Franchising Code of Conduct and extending protections for small businesses from unfair contract terms and unfair trading practices. This is huge for car retailers who will now have more certainty when dealing with manufacturers.

The changes essentially lower the burden of proof for unfair treatment and aim to balance the power dynamics between car importers and their dealers. Plus, under the New Vehicle Efficiency Standard, the government will work to move the vehicle count from the point of entry to the point of sale, addressing concerns that importers might load up dealerships with cars they can't sell.

This comes right when we need it - with new brands flooding the market and existing ones changing their retail models. Remember the Mercedes-Benz and Honda situations? And don't get me started on the Holden exit. Speaking of which...

Holden Dealer Case Verdict

In a related but disappointing note for some dealers, the Supreme Court of Victoria has ruled that General Motors did not breach dealer agreements when it discontinued the Holden brand in 2020. Eleven dealers who chose not to accept GM's compensation package had argued they were entitled to new Holden vehicles for five years under their 2018 contracts. The court didn't see it that way, ruling in favor of GM.

The Australian Automotive Dealer Association has called this a "massive blow" and a "dangerous precedent" for the industry. This ruling further emphasizes why those strengthened franchising protections I just mentioned are so crucial.

EV Price Wars Heating Up

Now to some exciting product news! Geely has launched its EX5 electric SUV at a surprisingly sharp price point. The Complete entry-level variant starts at just $40,990 before on-road costs, with drive-away pricing of $42,707 in the ACT. That's even lower than industry rumors suggested!

The Inspire range-topper comes in at $44,990 plus on-roads. And there's more - until April 30, Geely is throwing in a complimentary 7kW home charging unit, a year of public charging, premium paint, and three years of free servicing. They're really coming out swinging!

Not to be outdone, Kia has priced its electric EV3 SUV from $47,600 plus on-road costs. This positioning puts it significantly below Kia's slightly longer Niro EV, which starts from $66,590. The EV3 comes in three trim grades - Air, Earth, and GT-Line, with the top model at $63,950. With up to 604km of range, the EV3 looks set to shake up the market.

Toyota RAV4 Supply Concerns

Australia's best-selling car might face some challenges. An explosion at suspension supplier Chuo Spring's factory in Japan has disrupted Toyota's supply chain, potentially affecting RAV4 production. Toyota Australia is still assessing the impact, but given the RAV4's popularity here, this is definitely one to watch.

Return of the V8?

Here's one for the V8 lovers! Ram Trucks is reportedly planning to reintroduce its Hemi V8 engine in at least one version of its 1500 pickup truck for 2026, likely in the performance TRX flagship. This follows pushback from devoted V8 fans in the United States and backs recent statements from Ram Trucks boss Tim Kuniskis that "V8 is no longer a bad word around the company." Music to many Aussie ears, I'm sure!

Buttons Are Back!

In what can only be described as a win for common sense, Volkswagen has committed to returning physical controls to future models. VW design chief Andreas Mindt admitted that touch-style controls were a "mistake" the brand won't make again.

From the ID.2all onwards, VW will include physical buttons for the five most important functions - volume, heating on each side, fans, and hazard lights. As Mindt put it: "It's a car. It's not a phone." I think most of us can say amen to that!

Industry Events

The Australian Automotive Dealer Association has opened registrations for its 2025 Convention & Expo, which will take place on July 22-23 at the Brisbane Convention & Exhibition Centre. With the theme "Changing Lanes," the event will explore how technologies like AI can enhance dealership operations. Early bird rates are available until May 21, so get in quick!

Wrapping Up

That's all for this episode of the Southern Cross Dealership Report. From government reforms that will reshape dealer-manufacturer relationships to exciting new EVs hitting showroom floors, it's a fascinating time in the Australian auto industry.

The Southern Cross Dealership Report is an Australian news aggregator providing dealership staff with the latest insights on industry trends, regulatory developments, and market opportunities. The report and podcast are created using AI

This article was originally posted to the Southern Cross Dealership Report Substack and has been replicated here with permission.

Southern Cross Dealership Report - Episode 1