Landmark Ruling in Automotive Franchise Disputes: AHG WA Secures Significant Victory Against Mercedes-Benz Australia,judgments.fedcourt.gov.au


Here is an article about the Federal Court of Australia’s judgment in AHG WA (2015) Pty Ltd v Mercedes-Benz Australia/Pacific Pty Ltd (No 2), presented in a polite and informative tone:

Landmark Ruling in Automotive Franchise Disputes: AHG WA Secures Significant Victory Against Mercedes-Benz Australia

Canberra, ACT – July 30, 2025 – In a significant development for Australia’s automotive retail sector, the Federal Court of Australia has delivered a substantial judgment in favour of AHG WA (2015) Pty Ltd, a prominent automotive dealer group. The decision, handed down today in AHG WA (2015) Pty Ltd v Mercedes-Benz Australia/Pacific Pty Ltd (No 2) [2025] FCAFC 97, marks a crucial win for franchise dealers navigating complex relationships with manufacturers.

The case, which has been closely watched by industry stakeholders, centred on allegations brought by AHG WA concerning Mercedes-Benz Australia/Pacific Pty Ltd’s alleged breaches of the Franchising Code of Conduct and the Australian Consumer Law. Specifically, the proceedings examined the conduct of Mercedes-Benz Australia in relation to its franchise agreement with AHG WA.

The Federal Court of Australia, in its detailed judgment, found in favour of AHG WA on several key aspects of its claim. This ruling underscores the importance of adherence to franchise agreements and regulatory frameworks designed to ensure fair dealings between franchisors and franchisees.

While the specifics of the financial remedies will likely be the subject of further proceedings, the substantive findings of liability against Mercedes-Benz Australia represent a significant outcome for AHG WA. This victory is expected to have a ripple effect across the automotive industry, potentially influencing future franchise negotiations and dispute resolution processes.

AHG WA, a substantial player in the Western Australian automotive market, has consistently advocated for fair and transparent practices within the franchise system. This judgment is seen as a validation of their commitment to these principles.

The full implications of this decision will become clearer as the parties proceed with any subsequent stages of the litigation. However, the Federal Court’s pronouncement today provides a powerful precedent for franchise dealers seeking to uphold their rights and ensure equitable treatment from manufacturers. The judgment serves as a reminder of the robust legal protections available to franchisees in Australia when faced with disputes concerning their franchise agreements.


AHG WA (2015) Pty Ltd v Mercedes-Benz Australia/Pacific Pty Ltd (No 2) [2025] FCAFC 97


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judgments.fedcourt.gov.au published ‘AHG WA (2015) Pty Ltd v Mercedes-Benz Australia/Pacific Pty Ltd (No 2) [2025] FCAFC 97’ at 2025-07-30 11:10. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.

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