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With the growing number of brands, electric cars, ride share services, and government and consumer regulations pointing to what’s coming down the road for Australia, dealership consolidation is a key focus for motor dealers. Tight margins and the entry of international players are also driving them to pursue economies of scale. The industry is high risk/high reward. In many cases it involves assets worth hundreds of millions of dollars and has unique issues demanding specialised knowledge. Dealers have to manage manufacturer relationships and sales targets, sizeable property holdings and consumer disputes when they arise.
Our lawyers understand motor dealers and their needs, providing quick, cost effective, ‘can do’ advice. We understand their risk profile, and tailor our advice to match their business strategy, speaking their language. Our networks within the industry and other service providers from accountants to human resources products enable us to assist on so many levels.
Our lawyers acted for a large Victorian motor dealership company in the sale of two large Toyota dealerships in Melbourne’s south-east to HFH Auto Group. We managed all aspects of the sale for our client, including documentation, contracts, land and property leases. The deal was settled quickly and efficiently, with HFH Auto Group expanding its dealership footprint across Melbourne’s outer suburbs.
Macpherson Kelley acted for a motor dealer whose car brand manufacturer had threatened to terminate their agreement. We obtained a Supreme Court injunction to prevent the termination of the agreement and then negotiated with the manufacturer to reach an agreeable outcome to all parties. We reached a commercial agreement that saw our client continue as a dealer at its preferred site.
Macpherson Kelley acted for a motor dealer client in a multi-franchising dispute with their key brand. The manufacturer was unhappy with the separation of two brands on the one site and threatened to terminate its 50-year agreement. We were able to successfully negotiate a practical, workable and commercial arrangement allowing our client to have both brands on the one site.