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Former South Australian Holden dealer claims comments from GM boss about future of dealership network are misleading

RECENT remarks from GM Holden’s boss about the future of the company’s Australian dealership network fly in the face of reality, an affected Adelaide businessman says.

GM Holden boss Mark Bernhard.
GM Holden boss Mark Bernhard.

RECENT remarks from GM Holden’s boss about the future of the company’s Australian dealership network fly in the face of reality, an affected Adelaide businessman says.

Holden chairman and managing director Mark Bernhard said he was committed to maintaining the car maker’s 230-strong dealer network — including more than 30 outlets in SA — and that there were no plans to reduce the number of sales and service outlets across the country.

“We are comfortable with the network that we have got,” he told Go Auto News.

However, management of Plaza Auto, formerly Plaza Holden at Valley View, claim that at least four established SA dealers were told late last year that their agreements would not be renewed past 2018.

Two of those — Plaza Holden and Peter Page Holden at Elizabeth — were supposedly told that their current locations would not be renewed and were advised to tender against each other for a new dealership site in Salisbury if they wanted to continue selling Holden vehicles.

There was no guarantee that either of these dealerships would win the rights to trade at the location, Plaza general manager Stuart Cole said. Thus, Plaza Holden rebranded as Plaza Auto this month to ensure the employment of its 40 staff.

“The decision to relinquish our Holden franchise early has been made so that we can ensure the continued employment of our valued staff and their families, as well as continue to provide a local service facility to our loyal Holden and used car customers,” Mr Cole said.

Plaza Auto now has the exclusive rights in SA to sell Haval vehicles.

Holden will cease operations at its Elizabeth manufacturing plant next year.

luke.griffiths@news.com.au

Original URL: https://www.adelaidenow.com.au/business/sa-business-journal/former-south-australian-holden-dealer-claims-comments-from-gm-boss-about-future-of-dealership-network-are-misleading/news-story/287039a76f2ab1d3a287de8795b6efdf