Holden dealers set to sue GM

Monday, 30 March 2020

Ex-Holden dealers in Australia are preparing to sue General Motors, it has emerged.

Car Advice reports that GM did not disclose their plans to close the brand while still asking for investments in dealership upgrades. Apparently, GM reps made it seem like the parent company wanted to keep the brand running.

Before any legal action is taken, the dealers want to try and find a suitable financial negotiation first. Right now, the American company is offering around AU$1500 for each vehicle sold during a specific period but the Aussies reckon that figure should be closer to AU$6100. Forensic accounting firm KPMG added that Holden dealers in New Zealand are being offered 'almost double' the amount offered to dealers in Australia.

Dealerships over in Oz are reportedly preparing a lawsuit against ex-parent company GM.

GM's sale of Opel and Vauxhall in 2017 indicated the brand wasn't all that interested in pursuing the right-hand drive market on a large scale. Shuttering local Australian production in 2017 was a further nail in the coffin while the sales failure of the ZB Commodore certainly didn't help.

**READ MORE:

The Colorado was one of Holden's last sales hopes, constantly hovering near the top of the local new vehicle registration charts.

* The axing of Holden isn't stopping Ebbett Holden in Hamilton

* Holden highlights in New Zealand: part 2

Wonder what would have happened if the ZB Commodore received more of a (deserved) warm welcome? Would Holden still be around today?

* Holden NZ responds to Australian speculation

* Economy of scale killed Holden in the end**

In 2018, Holden was preparing to employ more engineers at its Port Melbourne headquarters to develop autonomous, electric and hydrogen cars for the wider General Motors empire.

Then, back in February, the American giant announced that the Holden brand would be closed in full.

At the time, GM's International Operations Senior Vice President Julian Blissett said: 'It was an agonising decision. But it was an issue of scale - it's just too difficult to sustain a brand only operating in two markets.'

When asked whether GM had considered either selling Holden or rebranding it to another GM brand, such as Chevrolet, Blissett would only say that the company had looked at 'a whole raft of ideas and many other options' and none of them could be made to work. He declined to comment directly on what those options were.

Since the closure, dealers on both sides of the Tasman have been able to empty the bulk of their stocks. What will happen next for the dealers is unclear but Ebbett Holden in Hamilton is forging ahead with its new premises.

The current Ebbett Holden site in Anglesea St is to be replaced by the recently announced, multi-million dollar development, Union Square.

'General Motor's commitment to 10 more years of servicing and warranty for the many thousands of Holden vehicles in the Waikato means there will still be a huge demand for service, parts and used vehicles for many years to come,' managing director Ben van den Engel said.

Union Square was always intended to be an 'Auto Hub' with additional on-site services such as paint, panel and tyre shop, providing a more comprehensive service to our customers.

'On the new vehicle sales side we'll continue to offer HSV product and we expect that to grow with the potential of new Chevrolet opportunities becoming available. Seat, part of the Volkswagen group, will be represented at our new site and we'll also be actively looking for new franchise opportunities.'

The Ebbett Group expect Volkswagen to move into their new premises at Te Rapa mid-2020, with Holden moving towards the end of the year.

Ebbett also plans to move their head-office functions and Carshare venture 'Loop' to the new development, creating an improved hub for their growing business.

GM will likely remain in our market, potentially under the GMSV banner, which could include various Chevrolet pick-up trucks re-engineered for right-hand drive and the upcoming Corvette.