7th July, 2020 ยท CEO Message

CEO Message No. 56

< 1 minute to read

On 30 June, General Motors’ deadline for its compensation offer to Dealers arrived. Despite widespread opposition, the offer did not change in the four months since it was announced and GM’s reluctance to negotiate in good faith was called out by the ACCC and a range of federal members of parliament including a number of Cabinet Ministers. Ultimately, more than two-thirds of the Holden Dealers signed rather than face the prospect of a protracted and costly court battle.

This is not the end of the issue. For starters, there are a number of Dealers which have not signed and are considering their options. The AADA will be on hand to support them in any way we can.

GM’s dismantling of Australia’s second biggest Dealer network has left many questions. Questions about the way in which it managed its withdrawal and questions about how we can prevent a similar situation occurring in the future.

The AADA will work to make sure the way in which GM conducted itself will not be forgotten and will lead to the regulatory reform we need in this industry.

A Senate Inquiry is currently taking place and the Government is considering whether it should strengthen automotive franchising regulations.

I strongly encourage members, whether they are Holden Dealer or have other brands, to put in a submission to the Senate Inquiry – it can be done confidentially. Write a letter to your local member of parliament or invite them to visit your dealership, so they can understand the level of investment that OEMs require Dealers to make.

Now is the time to express our concerns and call for urgent reform. The AADA is available to assist in any of these activities and we urge you to contact us and allow us to work for you.