The Supreme Court of Victoria ruled in favor of General Motors in a legal battle against a group of 11 former Holden dealerships in Australia that refused buyout offers when GM shuttered the Holden brand, according to Australian outlet CarExpert.
The dealers alleged that GM had a legal obligation to provide them with new cars through 2023 in a deal outlined in contracts signed in 2018. However, the Australian court ruled that GM had no such contractual obligation and that it lawfully shut down the brand.
When the Holden discontinuation was announced in 2020, General Motors reportedly offered the almost 200 Holden dealers the equivalent of $1,500 AUD for every car sold in 2019, plus compensation for showroom upgrades.
“Today will come as a massive blow to those Dealers who have gone through the exhausting and emotional process of taking on a giant multinational car company,” Australian Automotive Dealer Association (AADA) CEO James Voortman said. “The legal argument successfully put forward by GM that they had no obligation under the Dealer Agreement to supply cars to their retailers is incredibly disappointing and sets a dangerous precedent for the automotive industry.”
When asked for comment, GM Australia & New Zealand made a much briefer statement: “We welcome the decision.”
For those who don’t know, Holden was a mid-19th-century saddle-making business that moved into automobiles in 1898. About three decades later, it was acquired by GM in 1931. A small domestic automotive market and competitive pressure from cheaper imported cars eventually eroded Holden’s viability, leading to it ending production of its last model in 2017 and The General retiring the brand following a few years as an exclusively badge-engineered brand.
Although Holden is no more, GM still has a presence in the Oceania region. Similar to The Durant Guild in China, General Motors Specialty Vehicles (GMSV) brings higher-end models to Australia and New Zealand, such as the Chevy Silverado 1500 in LTZ Premium and ZR2 trims, the Chevy Silverado HD, exclusively in the LTZ Premium trim, and the Chevy Corvette Stingray, E-Ray, and Z06. The GMC Yukon Denali is the next model in the GMSV lineup. Additionally, Cadillac has an EV-only lineup available in the region.
Led once again by the Equinox EV.
Ranging from 7,100 pounds to 10,000 pounds.
With double the rear cargo space.
The Vette was apparently stolen.
Celebrating the region’s boldness and pride, GM says.
Improved efficiency and power offboarding as well.
View Comments
From the leading vehicle brand by sales in Australia/NZ in the 1950,s through to 2000,s the failure by GM to understand Australians loyalty to HOLDEN has now resulted to GM now selling just a few thousand CHEV units per annum. Ford are stilling many thousand of units Mustang, Ranger etc.. Other manufacturers from Europe, Japan , Korea and China have been able to do what GM used to do, sell thousands of vehicles “Down Under”. GM stands condemned by the way it treated Aussies and by the Companies incompetence down here.