THE VEHICLE DEALER’S NEWS SOURCE MARCH 2020 .CO.NZ History continues at Christchurch dealer p9 Details of Holden’s end emerge p3 The market leader for over a decade. VIA’s future Shift to the Autohub Team and goes to vote experience the Autohub difference. GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE | www.autohub.co p8 Renault’s Mechanical Breakdown Insurance future plans Payment Protection Insurance p37 Loan Equity Insurance Motor Vehicle Insurance www.autosure.co.nz | 0800 267 873 EDITORTALK HOLDEN DEPARTURE A TOUGH HIT ver recent weeks I have fielded I felt Holden had started to turn a a few calls from the broader corner. Getting out of traditional media - you may have heard vehicles, most of which were good but by Richard Edwards O Managing Editor me on the radio or seen me on One not great, and focusing on hot-selling News - regarding the end of the Holden SUVs and utes was a smart move. brand. My first reaction was that while The US-built Acadia was also a good the announcement was a surprise, it was sign, not so much for its own talents, hardly unexpected. but that it indicated a willingness to What will happen to those left behind? In New Zealand, the signs are good that many of the talented staffers will remain in the trade. On the dealership side, indications are most will either be absorbed by the dealer groups they now work for or picked up by others - salespeople, technicians and most ancillary staff remain in hot demand. For those at the head office, I know at least a few other distributors eyeing up options. It will be interesting to see the outcome of negotiations on dealer compensation. Reports indicate Kiwi dealers have been offered a better deal than their Aussie counterparts - they were doing better so perhaps they should. Bringing the contracts to a close will be no easy task, especially considering the investments Holden encouraged its dealers to make in the last couple of years. Everyone has a story about a Holden and I have a few of my own. I remember riding in my grandfather’s EH wagon, my uncle’s Kingswood with an HZ front grafted on. I was at the Sydney Motor The brand has been in a sales free-fall tap into some of the interesting GM Show when the new Monaro was in Australia, fast heading out of the top product on offer from its home market - announced, struggling to understand the 10 brands from once being a market rather than relatively run-of-the-mill and frenzied crush of the Australian media leader. Yes, here the distributor and politically troublesome European options. over what was a Commodore - and dealers have been doing better, though Bringing the contracts to a understood it when it became the first our volumes are not enough to justify car people on a sidewalk bowed down the enormous overhead maintaining close will be no easy task, for when I drove it up Queen Street on a such a brand require. especially considering Friday night. Where did Holden go wrong? The bones Most recently I toured the Chatham will be picked over for a long time to the investments Holden Islands in a fleet of Holdens - a Kiwi come. A few thoughts from my relatively encouraged its dealers experience if ever there was one. And uneducated mind are that they spent to make in the last couple late last year my newborn daughter came too long trying to prove the brand’s home in the back seat of a Holden SUV. Australian-credentials; product that was of years. Farewell Holden. I am not sure if you well engineered but perhaps a little will be missed, but you will definitely unexciting, and from some reports getting Where could Holden have gone? We leave a mark. offside with the “passionate” Aussie will never know now, as GM shifts to motoring media. dismantle 140 years of history. 2 | AUTOTALK MARCH 2020 | www.autotalk.co.nz NEWSTALK KIWI HOLDEN DEALERS MOVE FORWARD WHILE AUSSIES PREPARE FOR FIGHT M ending the Holden brand, announced last month, looks Gset to be messy for dealers across the Tasman. But for Kiwi dealers things appear to be running more smoothly. There are 800 Holden employees across Australia and New Zealand, with 185 dealers in Australia and 31 in New Zealand. AutoTalk understands most head office staff, and the majority of dealers, will have business wrapped up by the end of June. Australian dealers are going on the offensive in preparation for a battle with General Motors (GM) regarding adequate compensation as the company terminates new Holden says, explaining they sent out information GM regarding adequate compensation vehicle sales in the Australasian markets. soon after the announcement through as the company terminates new Holden Here in New Zealand things appear to be email and social media. “I had a number vehicle sales in the Australasian markets. more cordial, though one of the bones of of positive replies, along the lines of ‘great A group of unhappy dealers led by the contention for Australian dealers could team, great brand, it's a sad day’.” Australia Automotive Dealer Association explain that - an Australian dealer told Johnston says it’s business as usual for (AADA) met with prime minister Scott AutoTalk the belief is that the New Zealand their staff. He notes they have the Kia Morrison on February 26, telling him Holden dealers were getting a better deal. franchise in Porirua and are in discussion that the Holden compensation offer was We spoke to a number of Holden dealers, regarding other opportunities. “grossly inadequate”. with no one willing to go into the details “Everyone who currently works for us at AP Eagers boss Martin Ward says there of their exit negotiations. Johnston Ebbett has a job to do. We are are 943 dedicated GM employees who Johnston Ebbett managing director David talking to our team regularly, they are will be affected across his dealerships. Johnston says the settlement process with just getting on with it - they are He said there is also GM stock, Holden New Zealand is going well. amazing.” leases and property that will all “It is good, we are working well with Johnston says he expects be directly affected, and GM head office,” Johnston explains. Holden sales to be wrapped needs to take responsibility for "Holden have always been a up around the end of June this. good distributor to deal with - though they are still He says although it is early days and nothing has changed in working through in relation to the actual financial regards to that. Progress is what production is in cost of the Holden brand closure good.” the pipeline to be sold. Martin Ward on the Australian economy and more The dealer, which currently He notes they have directly the impact on the Holden car has dealerships in Wellington support from head office to sell dealers, it is certain that the cost will be and Porirua - including a new the stock, and “we have some significant. facility at the latter site - will great deals in the market.” But Holden Australia feels the dealers are David Johnston continue as a service agent Holden New Zealand was being treated fairly. following the wind down. unwilling to comment on the exit “Holden is doing the right thing by its Johnston says customers have been process, or how the remaining stock on dealers during this difficult time. We understanding and supportive - with hand will be handled. "The discussions believe the offer is fair,” says a Holden an increase in enquiry and no negative are our primary focus at this stage," a Australia spokesperson. feedback. spokesman told us. “In most cases Holden dealers will “We were very quick to communicate with receive compensation to a factor of four our database of customers - they are our Aussies on the offensive times the average Holden new car profit/ second biggest asset after our team,” he Australian dealers are going on the unit of all dealerships over the 2017- offensive in preparation for a battle with 2019 fiscal years. This number includes Continued on page 4 AUTOTALK MARCH 2020 | www.autotalk.co.nz | 3 NEWSTALK Continued from page 3 We have full history of the Holden brand “After comprehensive assessment, we the sale of highly profitable domestically - all 140 years - on page 39 and 40 of this regret that we could not prioritise the produced Commodore units in 2017/18. magazine. investment required for Holden to be “The compensation formula Holden successful for the long term in Australia is using is applied consistently for all Isuzu Trucks NZ to remain in GM hands and New Zealand, over all other dealers and covers reasonable earning Holden's demise is expected not to considerations we have globally,” says expectations from the new Holden sales impact the distribution of Isuzu Trucks in Blissett. department over the remaining portion New Zealand, currently part of General “This decision is based on global of the dealer agreement. Motors local operations. priorities and does not reflect the hard On February 27, the Senate referred “We would like to assure you and your work, talent and professionalism of the GM’s announcement on February readers that the situation for Isuzu Holden team.” 17, to withdraw the Holden brand Trucks in New Zealand, following the GM intends to focus its growth strategy and operations from Australia to the announcement, remains unchanged in Australia and New Zealand on the Education and Employment references and is ‘business as usual," spokesperson specialty vehicles business and plans committee for enquiry and report by the Edward Finn says.