The MTA welcomes the announcement of a Senate Inquiry into the decision by General Motors (GM) to withdraw the Holden brand and its operations from Australia.
Many were shocked by this cruel blow to Holden dealers across the nation, impacting 200 dealerships, their staff and customers.
Holden dealers have invested significant capital in facilities, product and equipment over many years of loyalty to the brand and General Motors. These family run franchisees made calculated business decisions in good faith based on commitments from Holden that they were staying in Australia.
An inquiry will be essential to set the benchmark for other automotive manufacturers who may consider an exit from Australia, to rationalise their network or changes in their distribution models.
An inquiry will also be an opportunity for the Senate to look at the broader context of the Franchising Code.
The Prime Minister and Federal Minister for Industry, Science and Technology, Hon. Karen Andrews MP, met with representatives from the Australian Automotive Dealer Association (AADA) and the Holden Dealer Council in Parliament House on Wednesday to discuss the Holden situation.
The MTA's CEO, Paul Unerkov, along with state-based MTA CEO's and National MTAA CEO Richard Dudley, today met with Minister for Industry, Science and Technology, Hon. Karen Andrews MP and Federal Minister for Employment, Skills, Small and Family Business, Senator Michaelia Cash, in Canberra to discuss automotive franchising draft regulations and reforms to the Franchising Code.
The scope of franchising reform needs to go further than what is currently included in the Federal Government's draft regulations and must be implemented quickly to protect franchisees who are currently at the behest of manufacturers.