The Motor Trades Association of Queensland say they are disappointed by news released Monday that General Motors will retire the Holden name from 2021.
A.P. Eagers Limited, owners of Zupps Beaudesert Holden said the company had been a loyal partner of General Motors within Australia for ninety years having commenced operations in 1930, eighteen years prior to Holden's launch in this country.
"This is therefore a very sad day for our company, our stakeholders and, particularly, our dedicated employees who have diligently represented the Holden brand on behalf of the General Motors manufacturer, some for over forty years personally," a spokesman said.
"General Motors has indicated that it intends to outline proposed transition and compensation arrangements with each dealer on a confidential basis and that these arrangements will be fair.
"It will not be possible for AP Eagers to assess the financial impact of these arrangements on our company, if any, until we have received further details from General Motors.
"We are expecting General Motors to be fair and reasonable in relation to the transition and compensation arrangements and to fully recognise our partnership that has spanned ninety years as well as the current commitments we have in place to represent them."
A statement from AP Eagers said discussion with General Motors would be on a confidential basis, but the company would provide further updates to the ASX as required by continuous disclosure obligations.
The MTA said the leadership team in Australia for Holden presented a business case to GM executives, who decided the investment in future Holden models would not produce a significant return.
"A staple of the Australian automotive landscape for the last 160 years, the announcement will have a significant, lasting impact on the local automotive industry in Australia, both economically and socially," they said.
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Group chief executive of MTA Queensland Dr Brett Dale said first and foremost, their thoughts were with the dealerships and their employees affected by the announcement along with their families.
"With approximately 200 Holden new vehicle dealerships across Australia affected by the announcement, including 39 here in Queensland, it is imperative that these dealers are compensated adequately for the significant investments they have made over many years in terms of capital, time and effort.
"The departure of Holden comes at a time where franchised new car dealers are under immense pressure from global manufacturers. This development re-affirms the need for government to thoroughly consider the framework of the new automotive franchising code in Australia to ensure that has adequate protection for businesses who've invested millions of dollars."
GM said it would continue to support its vehicles and have assured that all warranties, spare parts, servicing and recalls will remain for at least 10 years through national aftersales networks.