After four months of failed negotiations, two-thirds of Holden’s 185 Australian dealers have reluctantly agreed to accept the compensation offer on the table from General Motors (GM) for exiting Australia.

120 Holden dealers will each receive $1,500 per new car sold over a set period after accepting the compensation offer, with GM refusing to amend their original offer.

Australia’s network of Holden dealers had previously pushed for compensation of $6,100 per new car sold based on independent financial advice.

Despite the intervention of the Australian Competition and Consumer Commission and two days of mediation, many dealers were left without any choice but to accept the terms of the compensation. The 64 dealers who did not accept the offer, have not given up the fight with General Motors.

David Nicholson, Australian Holden Dealer Council Secretary, said today was a sad day for the history of the iconic Australian brand, but GM had simply left many dealers with no choice but to accept.

“GM have thumbed their nose at Canberra along the way, refusing to negotiate in good faith, making a mockery of mediation and finally rejecting the arbitration,” said Mr Nicholson.

“During the 1991 recession and throughout the Global Financial Crisis, Holden dealers continued to take stock from GM in order to help it survive the crisis, whilst it squandered more than $2 billion in taxpayer-funded support over the years.

“Yet as Australia entered its first recession since ’91, sadly the loyalty and support toward GM has not been reciprocated.”

Australian Automotive Dealers Association (AADA) CEO James Voortman said he was disappointed in GM for refusing to come to the table and negotiate.

“Over the past four months, 184 Holden Dealers have remained united in their opposition to the grossly inadequate offer of compensation from GM. Ultimately, GM’s complete unwillingness to negotiate and the prospect of a costly and lengthy court battle has had the desired effect,” said Voortman.

“GM has annual revenues of $200 billion and the prospect of fighting them in court was just not an option for many of the dumped Holden Dealers.”

GM will now begin the process of organising parts and services contracts with dealers for ongoing maintenance for the 1.6 million Holden vehicles that remain on Australian roads. Holden believes with these contracts they will still have a presence in the country for at least the next decade.

Source: Courier Mail (subscription required) | Holden dealers furious as GM ‘walks away’ from Australia

1 July 2020