GMSV launch attracts dealer, government backlash

Labor members of the Senate committee investigating Holden’s axing are pushing to have the company’s management recalled to give further evidence in the wake of the establishment of GM Specialty Vehicles today.

GM Holden interim managing director Kristian Aquilina appeared before the Senate education and employment references committee earlier this month, weeks before GM’s new Australian and New Zealand new vehicle business was confirmed.

Two key members of the committee are chair Louse Pratt (Labor, WA) and NSW Labor Senator Deborah O’Neill, who has previously written to corporate cop ASIC asking that the establishment of GMSV be reviewed for phoenixing.

While the recall of Holden management is not yet confirmed, sources close to Labor members of the committee insist it is being pursued.

The committee is due to hand down its findings into GM Holden operations in Australia in November.

GMSV will open its doors in the fourth quarter of 2020 with the Chevrolet Silverado 1500 its first vehicle. The Silverado 2500 and Corvette will follow in 2021. It will appoint the “majority” of current HSV dealers as GMSV dealers.

The push to have GM Holden give further evidence to the Senate was confirmed to carsales.com.au within hours of Australian Automotive Dealer Association (AADA) urging another hearing in a statement issued in response to the GMSV announcement.

“The Senate Inquiry looking into GM’s operations in Australia should strongly consider calling GM back to answer more questions,” the CEO of Australia’s peak dealer body, James Voortman, said.

“The launch of GMSV poses many questions and it seems unthinkable that shortly after ruthlessly dismantling the Holden Dealer network GM can simply be allowed to launch a new brand.

“GM remains in dispute with a number of dealers and most who have settled did so under duress, accepting the inadequate compensation on offer. Even a last minute request from the Federal Government to settle the dispute through arbitration was rebuffed by GM.

“GM has burned so much goodwill after taking so much from Australian taxpayers, yet here they are about to start another business.”