Angry Australian Senator Offers GM $1 for Holden Brand

GM’s decision to pull out of the Australian market and its compensation for Australian dealers are being criticized. In fact, James McGrath, Senator for Queensland has offered GM one dollar in exchange for the brand to express his dissatisfaction with the situation.

“If General Motors think the brand is worth nothing, then hand the brand back to Australia. Give it back to the Holden dealers,” said McGrath. “In fact, I’m happy to purchase the Holden brand from General Motors for a dollar. I’ll send you, Ms Barra, a dollar in the post and you can give us the Holden brand back and we’ll give it to the Holden dealers.”

The taunt follows accusations that GM’s compensation packages are “grossly inadequate” by the Holden dealer network. The claim came in a legal dispute currently simmering, in which GM called the claims “bizarre and illogical.”

The automaker answered the Holden dealer network’s accusation by saying its compensation scheme—which ranged $100,000 to $2.4 million, depending on the dealer’s circumstances—were “over four times what the average dealer made in the new vehicle department.”

The Australian dealer network, though, argues that GM is trying to “put the screws to these Holden franchisees” with timelines that require dealers to sign deals with “oppressive” terms.

“Our motor industry in Australia means our retailers, mainly family businesses, who invested heavily in facilities and people over the past 100 years at the behest of the manufacturers,” said Senator McGrath. “I’m very concerned at the apparent stonewalling by General Motors with regard to what should be good-faith commercial negotiations with its dealers in relation to their exit from the Australian market.”

GM has promised to support its people, its customers, and its partners “to ensure an orderly and respectful transition in the impacted markets.

[h/t: gmauthority]