Hyundai Australia says the AP Eagers and AHG merger has the potential to reduce competition in various markets and force small, independent dealers out of the industry.
Toyota Australia says its recommended retail price strategy could limit AP Eagers ability to lift prices, but ultimately it has no visibility of the price ultimatetly offered to a consumer.
The boss of Jaguar Land Rover says people are prepared to travel outside of their local area to get the best deal and service.
The $70 billion Korean car giant Hyundai has warned that a $2.3 billion merger between ASX-listed car dealers AP Eagers and Automotive Holdings Group will erode competition in Australia and could force smaller dealers out of the market.
Hyundai is also worried the merger could drive up the costs to consumers of having their vehicles serviced and result in the enlarged entity eventually ''cherry-picking'' the brands it wants to sell, excluding some car brands from key markets.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
