A Senate inquiry in Australia has been told that General Motors “exploited” Holden dealerships in its decision to kill the brand.
Speaking at the inquiry earlier this week, the Australia Automotive Dealer Association said that GM had recklessly allowed dealerships to continue with costly upgrades to their facilities in the months leading up to the closure announcement made in February. Association chief executive James Voortman added that the automaker has also refused to negotiate fairly in order to provide dealers with proper compensation.
Read More: GM Kills Holden Brand As It Withdraws From Right-Hand Drive Markets
“GM seem to be a law unto themselves and are the epitome of a large powerful offshore multinational using its position of power to exploit the smaller businesses it deals with,” Voortman said, as reported by The Guardian. “They have set a very dangerous precedent and in the process, they have emboldened other vehicle manufacturers to exploit the imbalance in power that exists between them and their dealers.”
The inquiry comes on the back of roughly two-thirds of Holden dealerships agreeing to the compensation package offered up by General Motors. Of the 185 dealerships that operate nationally, at least 120 agreed to GM’s initial offer of AU$1,500 per new car sold over a set period of time, in addition to a contribution for showroom and facility upgrades.
This came despite Holden dealerships seeking financial advice and being informed they were owed more than four times this amount.
In a statement issued on Monday, Australia’s industry minister Karen Andrews expressed her disappointment in GM killing off the brand.
“I, like most Australians, was extremely disappointed at GM Holden’s decision to walk away from our country, their local workers and loyal dealers,” she said. “Australian taxpayers have given this multinational company more than $2bn in financial assistance over recent years, and it still decided without consultation to wind up the Holden brand in Australia.”
