Senator and dealers roast GM over Holden exit

An Australian government senator has roasted Holden parent company General Motors (GM) over what he claims is opportunistic leveraging of the COVID-19 pandemic.

In an extraordinary speech to federal parliament this week, Queensland Liberal National Party (LNP) senator James McGrath said GM is using the coronavirus crisis to deny Holden dealers a fair go.

"To put it bluntly, General Motors are trying to sneak out under the cover of COVID-19, disappear in the night and leave Australian businesses stranded after an 89-year one-night stand," he said.

Senator McGrath was referring to ongoing negotiations between GM and Holden dealers over the compensation package offered to them for axing the brand.

"This is an unforgivable stance for General Motors to be taking, particularly at a time when the Australian economy and businesses are managing the economic shock of the current pandemic.

"In hindsight, it seems General Motors has planned to subvert the franchise code, and it's been years in the making. General Motors have promised the earth and have given a bucket of sand."

It wasn't just LNP senator McGrath who was out for GM blood, with the Australian Automotive Dealer Association (AADA) this week issuing a press statement denouncing the North American car-maker's corporate behaviour.

"After announcing it was terminating 185 dealers across Australia, the compensation offered to those dealers has been described as totally inadequate and not one dealer has accepted the offer," said AADA CEO James Voortman.

"Since the emergence of the COVID-19 crisis, GM have reportedly turned the screws and failed to budge on their initial compensation offer, telling dealers their ability to be a future authorised service dealer is dependent on them accepting the offer," said Voortman.

The AADA says new regulations around automotive franchising laws are required to safeguard such situations from re-occurring.

"The COVID-19 crisis has overshadowed the actions of a multinational, Fortune 500 company virtually ending its more than a 100-year association with Australia and treating local dealers very poorly in the process.

"That is why AADA has been working with the government on draft automotive franchising laws due to be finalised in the coming weeks. It is crucial that these laws are strengthened so that dealers are given protections similar to those afforded to dealers in countries like the US and the EU," added Voortman.

"We have seen Holden terminate all of its dealers and Honda have cut a substantial portion too. If these multinationals need to withdraw or restructure their networks, so be it, but there must be a set of regulations that ensure they do so fairly," he said.

Senator McGrath laid much of the blame on GM CEO Mary Barra and offered to buy Holden from GM for one dollar.

"I'll send you, Ms Barra, a dollar in the post and you can give us the Holden brand back and we'll give it to the Holden dealers. This is about the livelihood of people right across the country, particularly in regional areas.

"Shame on you, General Motors. Shame on you, Ms Barra, and your American legal chicanery," he stated.

The senator said that if GM reckons the Holden brand is worthless "…then hand the brand back to Australia. Give it back to the Holden dealers. In fact, I'm happy to purchase the Holden brand from General Motors for a dollar."