GM wants to heal rift with Holden dealers

General Motors Holden boss Kristian Aquilina has called for repair and healing in the wake of the divisive compensation battle with the axed car company’s dealers.

In the hours leading up to the 5:00pm June 30 deadline more than 120 of the 185 Holden dealers accepted GMH’s compensation offer for axing their franchise agreements two and a half years early.

But it only came after months of conflict between GM and the Australian Holden Dealer Council which also dragged politicians, the Australian Competition and Consumer Commission and corporate watchdog ASIC into the fray.

“Many of us may still feel bruised from this long process,” Aquilina, the interim Holden managing director, wrote in an email to dealers today (July 1).

“While it is natural to feel this way, choosing to heal and put in the hard yards towards repairing the relationship is the best path forward. I’m choosing to take this path – and I stand ready to help others do the same.

“Winding down new Holden vehicle sales was not something any of us wanted. But it is now time to get things back onto a positive footing and focus on a successful transition, for the sake of our customers.”

Aquilina’s wishes may not bear fruit as a significant number of dealers have rejected the compensation offer and vowed “to take the fight to Detroit”, implying court action against GM could be the next step.

There’s also a Senate Inquiry into Holden opening public hearings next month, continued scrutiny of the matter by the ACCC and calls for ASIC to investigate GM’s plans to establish the new GM Speciality Vehicles business in Australia.

Through months of negotiation and a June mediation session GM stuck to its original compensation offer of $1500 per car sold over a set period, partial remuneration of capital works and access to a lucrative five-year service and parts agreement for Australian Holden owners.

It resisted a last-minute push from the federal government to enter arbitration with dealers and extend the June 30 deadline and always insisted its offer was fair and reasonable.

“For me, it’s been a very difficult four and a half months,” Aquilina revealed.

“Without doubt, this time was difficult for you too and I understand if great sadness and some frustration remains for everyone involved. Now there's a real need to pick ourselves back up.

“For about three-quarters of the Australian Holden dealer network, we have agreement to continue supporting our vast customer base well into the future.

“No one knows Holdens and their owners better than a Holden dealer, so no one is better placed to keep them safely motoring across Australia. I am pleased we have been able to keep the majority of the network together to service our customers.

“I am now hopeful Holden’s legacy in Australia will transcend the difficulties of the last few months. Between us, we still have an important part to play to maintain trust with our customers and reassure them your business continues to serve their motoring needs.”