Back us in fight with GM, car dealers tell PM

Holden dealers have urged Scott Morrison to give them ‘political backing’ in their fight for a better compensation deal.

Scott Morrison with Industry Minister Karen Andrews. Picture: AAP

Holden dealers have urged Scott Morrison to give them “political backing” in their fight for a better compensation deal from General Motors following the company’s decision to axe the Australian brand.

The Prime Minister and ­Industry Minister Karen Andrews met representatives from the Australian Automotive Dealer Association and the Holden Dealer Council in Parliament House on Wednesday.

The car dealer industry is still reeling after General Motors ­announced it would end the Holden brand last week, with the government criticising the company for failing to give adequate notice. 

AADA chief executive James Voortman said his meeting with Mr Morrison was very good and he felt the government was on the side of his members. 

“There are some very serious concerns about the compensation packages being offered in negotiations with General ­Motors,” he told The Australian. “Every dealer we have spoken to says what has been offered in the past 24 to 48 hours is grossly ­inadequate.

“We need to know the government is on our side and we are confident that the Prime Minister and every minister shares our anger.”

The initial Holden compensation offer involves multiplying last year’s sales by the time still to run on the franchise agreement — 2½ years — then multiplying that by $1500 to represent average profitability per vehicle.

“The initial feedback we’ve had from dealers is that the compensation on offer is grossly inadequate. Most expected at least double,” Mr Voortman said.

“We’re not looking for money but political backing. The country’s most senior lawmakers should maintain their ­interest in this and speak up for Australian businesses.

“When has a franchisor pulled up stumps like this, leaving behind 200 retail outlets?”

Mr Voortman did not ask Mr Morrison for direct government assistance but car dealers do want a review of franchising laws.

“Car dealers don’t generally ask for government help. It’s not in our DNA,” he said. 

“We’re exploring the kind of response the government could take.

“One issue is stronger franchising laws so an offshore company like General Motors cannot act like this again.”