Holden fallout tipped to take time to hit NZ dealers
The Motor Trade Association (MTA) says it will be some time before Kiwi dealers feel the fallout from General Motors’ decision to call time on Holden.
Tony Everett, the MTA’s dealer sector manager, says New Zealand’s Holden franchisors are coming to grips with the announcement, but he expects to see none close their doors immediately.
“Some of these dealerships have been MTA members for more than 100 years, so there’s a lot of longevity with Holden and GM in the market here – as there is in Australia.”
GM opted to the close the marque in Australasia after implementing and considering “numerous” options to maintain and turn around its operations.
Julian Blissett, senior vice-president of international operations at GM, says the New York Stock Exchange-listed company was unable to prioritise investment needed for Holden to be a long-term success in New Zealand and Australia.
GM adds it has 31 dealerships in New Zealand, but the MTA says it has 42 Holden dealer-site members – while about four more aren’t members.
Kiwi franchisors will be provided with a transition plan for each location, says GM. This will involve compensation and the option to remain as service and parts agents for a decade.
Everett, pictured above, points out that parts and maintenance form the backbone of dealerships, and “provide some continuity, but the sales side of the business comes and goes as the mood, models and market competitiveness change”.
Many Holden dealerships are multi-franchise business models in that they retail more than one brand, while used-vehicle divisions are strong and will probably stay in place.
“It is likely dealers will look to replace or add franchises if and when they can, which could be a costly exercise,” Everett says. “Thirteen of 42 dealer MTA members only have Holden. Their needs are going to be urgent to seek a replacement partner.”
As for job losses, the MTA says it will be some time before that’s realised. Everett has yet to see any details of compensation from GM to franchisees and believes now is too early for such those talks to get under way.
He stresses GM’s decision to pull the plug on Holden has taken New Zealand’s motor-vehicle industry by surprise. It follows GM ending car production in Australia in 2017 and discontinuing the Commodore last year.
“Holden in this country was performing better than in Australia where it was struggling to stay in the top 10. In New Zealand, it was much higher up the pecking order, but in a much smaller market.”
