Holden dealers back Canberra call for arbitration

Holden dealers have backed the government’s request that they enter arbitration with General Motors over a compensation deal ahead of the car maker’s exit from the local market.

Holden dealers have welcomed the federal government’s intervention in its dispute with General Motors over a compensation offer from the car maker they say is unreasonable, unfair and unacceptable.

The Minister for Industry, Science and Technology Karen Andrews and the Minister for Employment, Skills, Small and Family Business Michaelia Cash over the weekend wrote to both parties requesting they enter arbitration to resolve the dispute.

The Australian Holden Dealer Council on Sunday said it was willing to enter arbitration but GM has not responded.

“General Motors Holden has so far been unwilling to move from its initial compensation offer which the Australian dealers continue to find unreasonable, unfair and unacceptable, particularly when New Zealand dealers have been offered significantly more,” the council, which represents 185 Australian Holden dealers, said.

“If General Motors believes its offer to be fair and reasonable then they should have no issue with it being independently ratified by an arbitrator.” GM in February announced its intention to “wind down” sales, design and engineering operations in Australia and New Zealand and discontinue its Holden brand by 2021.

The car maker has offered dealerships compensation of $1500 per car, a figure based on dealer profit numbers between 2017 and 2019.

But dealers argue the offer fails to compensate them for losses including millions of dollars in showrooms, facility upgrades and corporate signage — investments made based on GM promises about their commitment to Holden and the Australian market. Dealers say they are owed compensation of $6100 per car from the US car giant. Holden dealers in New Zealand accepted compensation of $2500 per car.