Two days of negotiation talks have failed to resolve the compensation settlement dispute between General Motors Holden (GM) and the 185 Australian Holden dealers, with GM’s compensation offer remaining unchanged.

Talks were brought about by the Australian Consumer and Competition Commission (ACCC) after GM refused to budge on their original compensation offer of $1,500 per new car sold between 2017 and 2019.

This offer has so far been rejected by dealers, who claim they are owed closer to $6,100 per new car sold after seeking advice from an independent accounting firm.

Dealers have previously accused GM of putting undue pressure on them to accept the offer without an opportunity to negotiate, warranting ACCC intervention.

Following the failed negotiations, Motor Trades Association of Queensland CEO Dr Brett Dale expressed his disappointment, describing the compensation offer on the table as “inadequate and a slap in the face.”

“We’ve put billions (of dollars) into sustaining that company in Australia,” said Dr Dale. “Our dealers have put their lives on the line and have spent millions.

“GM needs to step up and get serious.”

With dealers seemingly no closer to compensation now then where they were in February when GM announced their decision to retire the Holden brand, Wade von Bibra, owner of two Holden dealerships in Southport and Robina, said the drawn out negotiations were frustrating.

“It would have been nice to have been wrapped up a lot sooner,” said Mr Bibra.

“But… like anything, what they (GMH) deem as fair and reasonable is very different to what we as dealers deem as fair and reasonable.”

In an online statement issued Thursday, GM reiterated that their offer of $1,500 per vehicle for the next 2.5 years remains on the table until the end of the month.

Source: The Courier Mail (subscription required) | GM talks with Holden car dealers hits the skids

12 June 2020