It’s Complicated: GM Finds Its Hard To Break Up With Australia’s Holden



Senior representatives from Holden have concluded two days of dispute resolution talks with dealer representatives in Australia regarding the compensation dealerships will be given following GM’s decision to kill the Holden brand.

In a brief statement issued on the matter, it was confirmed that three senior Holden representatives attended the talks, facilitated by former Federal Court Judge Peter Jacobson. Holden says the discussions were constructive, but confirmed no agreement has been reached with dealerships.

“Holden considered all matters raised during the discussions and remains of the view that its offer is fair and reasonable,” the automaker said.

Read Also: GM Denies That It Is Undercompensating Holden Dealerships

The compensation package being offered by the car manufacturer includes an offer of AU$1,500 per vehicle for the next 2.5 years while also including unamortized capital expenditure related to new Holden sales such as showroom upgrades, a “highly-profitable” five-year parts and service agreement, and also takes into account certain special circumstances.

Holden says its offer remains open for dealerships to accept until the end of this month.

Dealerships across the country have previously lamented the compensation offer from GM. A proposal for a lawsuit on behalf of Holden dealers claims they should be receiving the equivalent of AU$6,100 for each new car sold over the set period, instead of GM’s AU$1,500 offer. Holden hit back shortly after this claim, stating new analysis showed some dealerships may be owed as little as AU$350 per new car sold.

Holden added in its most recent statement the dealerships have averaged a loss of AU$600 per car, implying that this makes its offer of AU$1,500 per vehicle more than fair.



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