A Senate committee has called on the Australian Competition and Consumer Commissioner to expedite its investigations into Holden's conduct in the lead-up to the closure of the car brand in Australia.
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Handing down a report Thursday, the committee said the complete withdrawal of the brand from the Australian market was unusual in that it terminated an entire dealer network.
But it said the company's subsequent negotiations and compensation arrangements were likely to set a precedent for how other manufacturers might conduct themselves.
"It is apparent to the committee that there was a clear imbalance in bargaining power between Holden and its dealership network," the Education and Employment References Committee said.
"The committee was made aware of dealer concerns, both publicly and confidentially, in relation to Holden's failure to engage in genuine negotiation."
It said dealers felt pressured into accepting a compensation offer, and it remained concerned by allegations Holden might have breached the good faith obligations of the Franchising Code and unconscionable conduct provisions in consumer law.
During the inquiry, the committee was told by the ACCC that it was following up allegations against the company by dealers.
In its report the committee said it was of little comfort to those dealers that the investigation had not progressed.
"Accordingly, the committee considers that the ACCC should expedite its investigation into concerns raised by former Holden dealers and provide regular public updates on this investigation," it said.
"Indeed, to instil greater public confidence in the operation of the regulatory framework, the ACCC should in future provide regular public updates for similar investigations relating to car manufacturers and dealers."
The committee said it was confident Holden would meet its obligations to provide parts and service support for the mandated 10 years, but urged the ACCC to undertake increased oversight to ensure that was the case.
US parent company General Motors announced it was closing the Holden brand early in 2020 and completed the withdrawal from the domestic market by the end of the year.
Its decision followed a period of declining sales and increased market competition and came about three years after it shut down its assembly operations in Australia.
Australian Associated Press
