Holden dealers ‘in deep freeze’

The Industry Minister’s office accused of issuing ‘threats’ and ignoring concerns about compensation packages.

A letter from Holden dealer representatives sent last months claims Industry Minister Karen Andrews had blown off meeting the group. Picture: Lawrence Pinder

Holden car dealers have accused the office of Industry Minister Karen Andrews of issuing “outright threats” and ignoring their concerns about lowly compensation packages when US car giant General Motors pulled the brand from the market.

With a Senate inquiry to begin on Monday into GM withdrawing the Holden brand from Australia, The Australian has obtained a leaked letter from an Australian Holden Dealer Council representative outlining a series of grievances with the conduct of Ms Andrews and her office.

The letter to Ms Andrews, sent last month, claims the representative of Holden dealers had been “blown off” by the minister 24 times since March, forcing the group to send an email of complaint to all government MPs.

The council representative, whose name was redacted from the leaked letter, says a staff member from Ms Andrews’ office ­responded to the email complaint by threatening to put the group in the deep freeze.

“Minister, I think I am right to object to such a condescending and contemptuous attitude and, seeming outright threats,” the letter said. “I was making representations on behalf of 185 dealers with billions of personal capital invested in the motor industry.”

The negotiator for Holden car dealers wrote in the letter that the group had told Ms Andrews’ staffer it felt “ignored”.

“The response I got … were words to the effect ‘I can show you what that is like’.

“I ignored this, and continued articulating our situation. Then again, I said it feels like no one is engaging with us. The response I got … (was) again words to the effect ‘I can show you what that’s like’.”

Coalition MPs have also told The Australian they were unhappy with Ms Andrews’ response to the dealers, who have been pushing for changes to the Franchise Code.

Scott Morrison and Ms Andrews backed an inquiry into the issue after meeting Holden car dealers in Canberra in February.

Australian Automotive Dealer Association chief executive James Voortman said after the February meeting that GM’s compensation package, of $1500 per car, was “grossly inadequate”. Labor senator Deborah O’Neill, who is on the Senate committee, said she was “disappointed and dismayed to hear that Karen Andrews treated our Holden car dealers this way”.

“Holden car dealers needed all the help they could get in this dispute with General Motors, but what they got from this government, is an incompetent minister and threats from her staff,” Senator O’Neill said.

Liberal National MP Warren Entsch said he was “not going to attack” Ms Andrews.

“I have a view and I am going to fix the problem,” Mr Entsch said. “There need to be amendments to the code. What was done was nothing short of disgraceful.”

In the letter to Ms Andrews, the council representative wrote that it was obvious the government favoured franchisors over franchisees.

The letter said many dealers were not prepared to take GM to court because they were unsure whether the government was prepared to improve the Franchise Code.

“I am sure if we had an opportunity to better prepare them, there would have been different decisions. In fact, litigant dealers are now probably left with not enough numbers to fund their case,” the letter said.

“The crown might be liable for those losses now to be experienced by Holden dealers, and no doubt other vehicle franchisees in the near future.”

Ms Andrews’ office declined to comment.