Holden closure

General Motors says it will not reduce its compensation to dealers, even though the US car giant claimed a fortnight ago it had new calculations which estimated showroom owners may only be entitled to a fraction of the original sum offered. General Motors Holden has invited its network of 185 dealers – which operate 203 showrooms – to a video conference in the second week of June.

US car giant General Motors has broken its silence and hit back at claims its compensation offer to Holden dealers over the shutdown of the brand is unfair – and says accusations of unconscionable and misleading conduct are “baseless”, “plainly wrong”, and “unsupported by fact or law”.

EXCLUSIVE US car giant General Motors has issued a deadline to reach an agreement with Holden dealers over compensation for ending their franchise agreements almost three years early – following a high level meeting of lawyers and executives representing both parties last week. A confidential email – issued after the meeting – from Holden to its network of 185 dealers who operate 203 showrooms, also warned the settlements will come in three separate payments rather than a lump sum.

EXCLUSIVE Holden dealers have written to the global boss of General Motors, Mary Barra, threatening legal action for what they claim was “deceptive” and “unconscionable” conduct in the lead-up to the shutdown of the iconic brand. The network of 185 Holden dealers who operate 203 showrooms claim General Motors was aware there was a risk it would close Holden – even though the company had been asking for showroom upgrades and assuring the network it was here for the long term.

For ACDelco – General Motors' in-house parts division – it’s business as usual for the foreseeable future, with the brand reaffirming it’s here to stay and assist with keeping Holden’s existing car park running in the wake of the brand's announcement that it will withdraw from the Australian market.