Have the dealers actually sold out of cars yet?
My local dealer has sold out and signage is coming down this coming week.
Interesting GoAuto article.
Holden dealer relationships broke in 2005
Senate inquiry told GM wrecked the dealer relationship and the business model crumpled
HOLDEN management in 2005 instigated a change of attitude that effectively broke the strong relationship with dealers and contributed to disharmony that continues today, the senate inquiry into Holden’s conflict with its dealer group was told.
The Senate, Education and Employment References Committee inquiry this week was also told that despite Holden’s denial, dealers and former executives indicated there was a planned exit from Australia made years before the announcement that Holden would cease production.
“In 2005 there was a different way of doing business and – I won’t name names but certainly every dealer in Australia will know who I’m talking about – decided to change the needle a bit and move the partnership relationship to a ‘them and us’.
“There has been a gradual decline since then in the feeling between the dealers and the factory which has never recovered.”
The president and managing director of Holden in 2005 was Dennis “Denny” Mooney, who was appointed on January 1, 2004 and returned to the US as vice president of GM Engineering on August 1, 2007.
The inquiry also heard from Holden managing director Kristian Aquilina who said the conspiracy theories about GM planning the closure of the brand long before any announcement were incorrect.
He told the inquiry that he was told of the closure on February 14 and the official announcement was made on February 17.
“In addition, it (the submission) asserts that the Holden service operations agreement has forced dealers into contracts riddled with unfair terms and prevents the opportunity for compensation.
“It says: ‘Holden has effectively assured dealers they have no lifeline to sustain their business once Holden has gone’.”
Senator Pratt said to Inverell Holden dealer Mark Palmer: “Are you aware of that?”
Mr Palmer said: “Yes. It’s exactly why we are in this situation.”
“The agreement is so far in their (Holden) favour there may as well be no agreement,” he said.
“We (dealers) have no input. It’s all weighted to Holden and there’s no opportunity for negotiation. That is why GM has said insistently that the offer is reasonable.”
The inquiry is continuing with a final report due at the end of the year.
When DM took over, Holden was insanely profitable, but things deteriorated rapidly under his watch. He managed to send boatloads of cash to Detroit - so much cash went out that in 2006 Holden almost went belly up due to cashflow issues, and Commonwealth Bank told GM to pay their bills and take their business elsewhere. In 12 months he slashed dealer margins and sales allowances, he told major fleet customers to f/off, slashed VE development budget by 40%, halved advertising budget, closed down export department, cancelled Holden Ute (twice!), implemented headcount freeze at a time when many top people simply had enough and left. It was a race to the bottom. Definitely the worst, and most short-sighted, head honcho I've ever worked for. Under his watch Holden staff morale hit rock bottom, it was a very toxic work environment.
The last chapter of Holden will be used as the case study for business 101 monumental fkups for decades to come. How "the" quintessential Australian brand could fall so fast and so completely is beyond belief. I don't know if it's fair to lay so much blame at Mooneys feet or was he the local puppet doing Detroit's bidding as 'they knew better'? Not sure we'll ever know the true answer to that and either way it's moot. Holden is gone and the missed potential is breathtaking.
What GM taketh away, Toyota giveth.
GM vehicles previously owned.
59 Holden Special
71 Holden Premier
78 Holden Commodore SL
80 VC Brock Commodore
84 Holden Commodore SL/E
90 Holden Calais
98 Holden Commodore VSIII Ute
01 Holden Calais
04 Holden Rodeo
12 Holden Ute
91 HSV Senator 5000i 5.7
68 Chevy Impala 327
75 Chevy Caprice 350
78 Chevy Caprice 305
78 Chevy C10 Stepside 350 X 2
86 Chevy Corvette 350
90 Chevy Camaro RS 5.0
65 Cadillac Sedan DeVille 429
89 Cadillac Allante 4.5
68 Cadillac Eldorado 472
Our local dealer Booran still has about 20 new unregistered vehicles according to their website.
I'm so over GM now. I really hope that H2X gets operational because I really would love to see a ute like the one at this link. https://www.carsales.com.au/editoria...ax-ute-124743/
There are currently 1 users browsing this thread. (0 members and 1 guests)