General Motors plans to conduct a dispute resolution in the week of June 8 with Holden dealerships across Australia regarding its compensation offer.
The ongoing issues between General Motors and Holden dealers are centered around the compensation the U.S.-based automaker will provide to Holden dealerships after announcing it would kill off the brand earlier this year. GM has invited its complete network of 185 dealers to a video conference to discuss compensation.
GM has offered to pay out dealerships the equivalent of AU$1,500 per new car sold over a set period of time while also providing funding for recent showroom upgrades made by Holden dealerships. Not satisfied with this compensation, a proposal for a lawsuit on behalf of Holden dealers claims they should be receiving the equivalent of AU$6,110 for each new car sold over the set period.
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Earlier this month, GM sensationally hit back, asserting that new analysis showed some dealerships may be owed as little as AU$350 per new car sold in addition to costs associated with showroom upgrades.
In a statement this week, General Motors Holden says its compensation offer of AU$1,500 per new car sold remains valid until June 30, 2020, and that despite its most recent analysis, it will not decrease this offer.
“GM Holden firmly believes it has operated in good faith and flatly rejects any claims to the contrary. Our compensation offer is fair and reasonable, and the company continues to seek an outcome that supports the transition for dealers and ongoing support for existing customers,” the company said in a statement. “As the company has stated previously, GM Holden wants an ongoing relationship with dealers and it does wish to provide them with the opportunity, as part of a compensation package, to enter into an ongoing long-term service and parts supply agreement.”
