General Motors Holden Australia NSC Pty Ltd (Holden) has committed to negotiate about compensation being paid to dealers after the announcement of Holden’s withdrawal from the Australian market.

This has largely come about after intervention from the ACCC for Holden to agree to extend the deadline
for acceptance of its compensation offer and to engage in good faith negotiations with dealers.

The ACCC had received information that Holden was placing undue pressure on dealers by insisting on a deadline for a response to the proposed compensation package forcing dealers to accept or decline, and were preparing for court action.

AADA CEO James Voortman said, “Dealers are already struggling with the worst trading conditions on record and were then given an end of May deadline by Holden to accept an offer described by all of the Holden dealers I have spoken to as unacceptable.”

“Holden was putting pressure on dealers to accept the compensation package by 31 May without giving a proper opportunity to negotiate and engage in a dispute resolution process. We believe this deadline was unnecessary and also unfair,” said ACCC Chair Rod Sims.

“We expect Holden to negotiate fairly with dealers who have represented the Holden brand in Australia for decades. We will continue to closely monitor Holden’s commitment to engage in good faith negotiations,” Mr Sims said.

Sources:

ACCC media release: Holden commits to negotiate in good faith with Holden dealers 22 May 2020
AADA media release: Dealers welcome ACCC intervention in GM negotiations 22  May 2020