Holden accused of ‘bullying’ over payouts

Stalemate between manufacturer and franchisees continues as parties argue over cash payouts in the wake of Holden’s departure.

Holden dealers have accused General motors of “bullying” businesses over a protracted payout dispute.

General Motors announced in February that Holden would stop selling new cars in Australia, leaving more than 100 dealers with an uncertain future.

Holden announced earlier this year that it would cease to exist.

It informed dealers of a planned payout schedule and gave them until the end of May to commit to the deal. Dealers responded by asking for about 10 times more than Holden put forward.

The ACCC pushed Holden to take part in negotiations with dealers following what chair Rod Sims described as an “unnecessary and also unfair” ultimatum given to businesses set to lose revenue when Holden shuts its doors.

Holden ended local production in 2017.

Holden says two days of discussions facilitated by former Federal Court Judge Peter Jacobson this week “were constructive but no agreement was reached”. It says dealers lost an average of $600 per car sold last year, and that its offer to pay $1500 per car for 2.5 years of lost sales is “fair and reasonable”.

But representatives for Holden dealers say staff from General Motors headquarters were not present during two days of negotiations that failed to elicit an outcome.

Dealers accused Holden of employing “bullying tactics” to get its way, highlighting what it describes as a “substantial imbalance of power” between the head office and its franchisees.

The manufacturer said it wants to reach a deal with existing outlets to supply parts, maintenance and warranty services to 1.6 million customers.

But dealers have rejected its terms. A statement issued by the Australian Holden Dealer Council accused the manufacturer of “appalling behaviour” which “is inconsistent with the ethical practices General Motors espouses”.