120 Holden dealers sign agreement with GM

120 Holden dealers sign agreement with GM

juillet 1, 2020 0 Par admin

Yesterday 120 Holden dealers agreed to the terms of a deal with GM rumoured to worth $150 million, or $1500 per new car sold over a set period of time.

The terms of the compensation deal have been the subject of a protracted legal battle in which Australia’s consumer watchdog the ACCC intervened to bring about mediation.

There are approximately 185 Holden dealers in Australia. (CarAdvice)

David Nicholson, Secretary of the Australian Holden Dealer Council, said the majority of dealers were left with “no choice” but to accept the offer.

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

“If Australia continues to allow small, family businesses to be ruined by overseas corporates then what have we become?

“With great reservation, financial pressure and reluctance, 120 dealers have now accepted GM’s compensation offer.”

The old and the new – the Holden Commodore from 1978 to 2017. (Supplied)

Mr Nicholson said he believed weak regulations allowed GM to walk away from agreements, leaving dealers with “empty showrooms and millions in losses”.

“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,” Mr Nicholson said.

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

The PM slammed GM Holden in February for wasting $2 billion worth of taxpayer money. (Nine/AAP)

Holden closure ends 160 years of Aussie motoring

In February it was announced that Holden would be axed at the end of 2021, ending 160 years of the brand’s association with Australia.

Holden’s global parent company General Motors decided to retreat from right-hand drive vehicles internationally, informing Holden staff and dealers in a shock move.

Approximately 600 of 800 jobs will be lost, including workers from Holden’s design studio and Lang Lang proving ground.

The modern-day Holden
Holden’s VFII Commodore released in 2015 shows the extraordinary evolution of the brand and the vehicles. (Fairfax Media)

All Holden employees being sacked will be provided with separation packages and employment transition support.

The remaining workers will stay on to service Holden’s ongoing warranty commitments for at least 10 years.

Holden was founded as a saddlery in South Australia in 1856 before moving into building vehicles in 1908.

Holden became a subsidiary of the United States-based General Motors in 1931, beginning the brand’s 89 year history as a combined entity.

Holden car badge (Getty)
Holden was founded as a saddlery in South Australia in 1856 before moving into building vehicles in 1908. (Getty)

Currently Holden imports General Motors vehicles into Australia from its sales headquarters in Port Melbourne.

Holden is also supported by a national parts distribution centre, a global design studio and its traditional car proving ground at Lang Lang.