Join our

mailing list.

Keep up to date with our latest insights.

  • This field is for validation purposes and should be left unchanged.
Perspective

What does Renault’s shock decision mean for dealers?

The recent unilateral decision by Renault Australia to transfer its distribution of Renault vehicles to an independent distributor, without consultation with dealers or the dealer council, is likely to have significant ramifications for the existing network of Renault dealers. 

Published:

Share

Dealers have entered into dealer agreements with Renault Australia and it seems, expanded dealership facilities over many years. Those dealers would not have contemplated any change to such arrangements without full consultation and an explanation as to how the transfer would be of benefit to the brand or to dealers. This change, once again, demonstrates the weakness of the Franchising Code in protecting dealers.

In view of the loss of market share in recent times, it is likely that in the next few years there will be a reduction of Renault dealers, either:

  • as a result of a network review, or
  • by some dealers deciding to exit the brand.

All these matters require long and careful consultation in an arrangement of mutual dependency and should not be made by way of unilateral decision as was stated by a dealer in evidence to the Senate Committee last week.

Dealers and the dealer council may be able to rely on the collective bargaining class exemption to approach the new independent distributor to achieve fairer terms of the transferred dealer agreement. For Renault dealers based in NSW there might be redress under Part 6 of the Motor Dealers and Repairers Act 2013 No 107 in relation to unjust conduct.

If you are a Renault dealer in discussions with Renault or the dealer council, please don’t hesitate to contact our motor dealer team for assistance.

Published:

Share

Stay updated with our Friday Workplace Briefing

Every Friday at 10:30am, join us online to hear the critical news and developments that affect your workplace. We’ll keep it simple, pragmatic and to 30 minutes.

Have a question or need advice?

Our team are here to provide tailored advice for your business and workforce.

Principal Lawyer - Head of Commercial

Legal Solutions.

Found.

Anything we can help you with?

Fusce sed egestas massa. Praesent eu sem pulvinar, condimentum massa ut, finibus ante. Praesent congue magna quis lectus placerat, tincidunt pellentesque ex placerat. Quisque facilisis quam et augue rutrum, at laoreet purus bibendum.

Related Insights

Join our

mailing list.

Keep up to date with our latest insights.
  • This field is for validation purposes and should be left unchanged.