GM Holden and local Holden dealerships across Australia are still yet to agree to terms on compensation after General Motors made the call earlier this year to kill off the Holden brand.
The Australian Holden Dealers’ Council and GM Holden have been going back and forth during dispute resolutions and earlier this month, held two days of talks but were unable to come to an agreement.
In a recent statement, Australia’s minister for Industry, Science and Technology, Karen Andrews, called on General Motors to honor its promise to negotiate compensation with Holden dealerships in good faith.
“Dealers have repeatedly shown they are committed to working with GM Holden to reach an outcome and finalize protracted negotiations stemming from GM’s decision to retire the Holden brand in Australia. GM Holden should demonstrate that same commitment,” she wrote.
GM’s decision to kill off the Holden brand has upset many Australians because over the years, the company has received more than $2 billion in local taxpayer support.
“Australian consumers, dealers and the Government have shown great commitment to GM Holden over many years, including more than $2 billion in taxpayer support. It’s now time for this multinational to repay some of that faith,” Andrews added.
In a recent statement, GM Holden said it is responding to the most recent letter regarding the dispute from the Australian Holden Dealers’ Council and is remaining steadfast with its compensation offer.
GM Holden says that in 2019, dealers lost an average of AU$605 per new car sold and only made AU$351 per new car sold over the 2017-2019 period. GM Holden is offering dealerships AU$1500 per vehicle based on 2019 sales. The automaker will also provide additional compensation to dealers for unamortized capital investments, special circumstances, and dealers who are solely dependent on Holden. Additionally, it will pay for the removal of signage and has provided dealers with AU$130 million in stock liquidation bonuses that will enable them to make substantially enhanced profits.
GM reiterated that its offer has been on the table since February and will remain open through to June 30.