The Australian Automotive Dealers Association (AADA) says the decision by the Australian Competition and Consumer Commission (ACCC) to conclude its investigation into General Motors conduct towards dealers in withdrawing the Holden brand from the market does not vindicate the company in any shape or form.
The ACCC announced it was concerned by the behaviour of GM, but it was concluding its investigation so as not to prejudice the legal action being undertaken by Holden Dealers against GM.
“This will be disappointing news for many ex-Holden Dealers, but General Motors should not see this as vindication of their actions,” AADA chief executive James Voortman says.
“The ACCC has by no means endorsed their actions, labelling its treatment of Dealers as ‘a lesson to all franchisors of what not to do’ and ‘damaging the General Motors brand’.
“The ACCC’s comments came after a bi-partisan Senate committee censured General Motors for their treatment of Holden Dealers, employees and their families.
“GM’s actions led the Government to introduce reforms on 1 July of this year which would prevent other car Manufacturers following their actions. These are important reforms for the Australian automotive industry and we will continue to monitor the operation of these laws
“The ACCC has been very clear that it is not pursuing this matter because it does not want to prejudice the private actions being taken by Dealers against General Motors,” he says.
The AADA will continue to support those dealers who are taking court action against GM.
The ACCC is looking into whether Holden’s car servicing arrangements, and the decision to end the ‘lifetime’ capped price servicing program, raise any issues under the Australian Consumer Law.
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