Of the 185 Holden dealers affected by General Motors decision in February to pull the brand from the market in Australia, 120 have reluctantly accepted the compensation offer, which averaged $1,500 per car. The US parent company decided to retreat from right-hand drive vehicles internationally, shocking Australian Holden dealers and those loyal to the brand.
Despite the intervention of the Australian Competition and Consumer Commission and two days of mediation, many dealers were left without any choice but to accept the terms of the compensation. The remaining dealers who did not accept the offer, have not given up the fight with General Motors.
David Nicholson, Australian Holden Dealer Council Secretary said dealers now had empty showrooms and millions in losses from recent refurbishments, and that General Motors refused to negotiate in good faith and would not engage in arbitration.
Australian Automotive Dealers Association (AADA) CEO James Voortman said that General Motors should face a Senate Inquiry and be accountable for misleading dealers about the continuation of the brand in Australia, and their subsequent unreasonable compensation offer.