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Business View Australia - January-February 2016 155
OTIVE
totally on automotive vehicles and
parts from overseas manufacturers.
Over a period of time, many busi-
nesses will close down and oth-
ers will get amalgamated into larg-
er companies. The MTAA is taking a
number of steps to ensure that the
transition that takes place is helped
by appropriate government policies
that provide the
correct type of sup-
port to the affected
parts of the auto-
motive industry.
Recently,
the
MTAA organised a
summit in Canberra
to discuss issues affecting the auto-
motive sector. It has been pursuing
the issue of a more holistic policy
from the government since 2013. At
that time, it became obvious through
analysis and investigation that the
retail, service, repair, recycling and
associated sectors of the automo-
tive supply chain were undergoing
important changes.
Speaking about this issue, Richard
Dudley says, “Some of those chang-
es were being driven by technology.
Others were being driven by chang-
ing business circumstances due to
changing relationships.
“For example, the vertical integra-
tion of the motor vehicle insurance
market was taking place whereby in-
surers were not only selling policies,
but they were building facilities to
conduct their own repairs. There is
nothing wrong in that, it is just that
it is a sign of vertical integration that
has an impact on independent mo-
tor body repairers.”
While the automotive industry will
continue to adapt and evolve, the
MTAA is playing an important role in
ensuring that fed-
eral policies are in
the interest of the
trade and the Aus-
tralian consumer.
Its strong linkages
with its member as-
sociations across
the country and the
experience that it has gained since
its inception in 1988 puts it in a
unique position to offer the govern-
ment advice and guidance.