What Will Happen To Holden's Dealers
The pressing reason for the folding of Holden has been compensation of the Holden's dealer network, many of who have paid millions for car yard enhancements in recent years despite receding sales.
Holden closing its doors.— ☘️Maureen saysG’day 🌧⛈ (@826Maureen) February 17, 2020
Screenshots Daily Telegraph electronic vers pic.twitter.com/JPDjkd3Fzb
We won't be going into the protracted details of the period of arguing in between both parties, GM offered compensation of one thousand and five hundred dollars per car, while dealers were requesting six thousand dollars. In spite of Holden dealers many public and private requests for negotiation and a higher settlement GM did not change away from its initial amount.
And as a result of this more than one hundred and twenty remaining from 184 Holden dealers had to accept the small amount earlier this week due to GM setting a June 30 deadline.
Australian Automotive Dealer Association (AADA) Chief Executive Officer Mr James Voortman has been firm with the assessment of how the negotiations between both stakeholders were conducted, placing blame at General Motor’s feet.
And yet, that doesn’t mean the battle has come to a end. AHDC (Australian Holden Dealer Council) indicates that the remaining 60 or so Holden dealers are set to push General Motors to obtain more.
Neither General Motors or Holden released any public statement on this deal.
Who Will Service A HSV?
And with quite a few dealers removed their Holden Lion signage and reverted over to different brands, it has given a lot of hesitation and lack of clarity for drivers of Holdens.
General Motors announced back in February they were looking to to get five-year contracts from dealers with the possibility to take these to 10 years, to ensure Holden drivers have security. While specifics of these deals have been forgotten with all the saga around remuneration, it is thought that the other Holden dealers that did come to terms with General Motors have been able to have servicing agreements included in agreements.
What's The Change With GMSV?
HSV will become GM Speciality Vehicles (GMSV).
As a part statement in February of Holden’s close down, GM layed out their desire to sell certain models as GMSV. While the company are quiet on these ideas since, it’s understood GM will team with Holden Special Vehicles, and will expand the current offerings of right hand steer converted General Motor's autos.
However, there is a catch for this plan and the AHDC issuing the following statement recently in June questioning the validity of GM Specialty Vehicles.
John Voortman has said he was very concerned about the possibility General Motors would eliminate Holden’s network and then re-emerge to the market using another company name.