Australia’s largest car dealership company, Automotive Holdings Group, faces a $15 million hit to profits in 2017-18 from the industry-wide crackdown on add-on insurance products for car owners by the Australian Securities and Investments Commission.
AHG has 110 car dealerships across Australia and New Zealand, with 37 in its home state of Western Australia, where the weak economy hurt profit margins and volumes of vehicle sales in 2016-17. New vehicle sales are down 7.2 per cent on a year-to-date basis to the end of July in WA, which is still battling through the fall-out from a severe mining industry downturn.
AHG shares slipped by a further 4.5 per cent on Friday after the company cuts its final dividend to 9.5¢ per share f…
Read the full article at: http://www.afr.com/business/transport/automobile/ahg-faces-15-million-hit-from-asic-insurance-crackdown-20170825-gy40ir