Senate committee slams GM’s handling of Holden closure

A senate committee has slammed General Motors’ actions surrounding the withdrawal of Holden, labelling the auto giant’s conduct as “un-Australian” in a draft copy of its report obtained by the West Australian.

It comes as the committee released its findings from a senate inquiry held last year, which was initially planned to examine GM’s conduct but was then expanded to include the overall relationship between manufacturers and dealers in Australia.

Earlier this month, the Federal Government announced plans for laws to protect dealers including harsher penalties for manufacturers breaching the Franchising Code and making voluntary principles mandatory.

The senate committee was concerned Holden’s negotiations with its dealers — which included refusing a Federal Government call for arbitration — would set a precedent for other brands.

The report noted an apparent imbalance of power between GM and Holden dealers, many of whom felt forced into accepting the offered compensation package in order to be able to continue servicing Holdens in the future.

“While acknowledging and respecting the right of private companies to make their own decisions, the committee condemns as un-Australian the actions of GM in the lead-up, during and following the shutting down of Holden,” the report said.

“The committee censures GM for their treatment of Holden dealers, employees and their families.”

The committee also raised concerns for the future of the Holden brand, saying it was not convinced it would be preserved in perpetuity.

“The committee is particularly concerned that the rich history associated with one of Australia's great cultural icons should not be lost to the Australian people and calls on GM to reaffirm its commitment to ensuring that Holden's historic collection of motor vehicles and memorabilia remains on public display in Australia,” it said.

“Given the importance of the Holden brand to the Australian psyche, the committee requests that the Holden brand is not sold unless to an Australian entity.”

Among the committee’s seven recommendations, it urged the ACCC to “expedite its investigations into the behaviour and actions of GM Holden and should commit to provide regular public updates on this investigation” and makes sure GM adheres to Australian Consumer Law in the coming years in regards to warranty and recalls, technical support and access to parts.

“It is of little comfort to former Holden dealers that the ACCC investigation into GM Holden's exit appears to have not progressed, despite an initial indication that it would be wrapped up by the end of 2020,” the report said.

Other recommendations included the Federal Government prioritizing its proposals from earlier this month so they take effect by July 1 this year, and introduce mandatory binding arbitration to resolve disputes.