GENERAL MOTORS IS REACHING NEW HEIGHTS (or lows) with its recent behaviour towards its dealers, and now Holden Special Vehicles.
The company, by withdrawing the supply of its vehicles, has effectively forced the closure of Holden Special Vehicles. Making it even worse, HSV dealers will not be offered any compensation.
By not supplying any General Motors vehicles for conversion to right hand drive, HSV is left with no vehicles to distribute.
Under the settlement GM reached with Holden dealers, they were paid on the basis of the volume of cars they were selling in 2019. It is understood that figure did not include HSV sales.
In a move that’s sure to anger many, including those who tipped in millions of dollars to keep Holden operational over many years, GM is now setting up a completely new network, GM Specialty Vehicles. In an announcement, GM stated that the HSV conversion role will remain with the Walkinshaw Automotive Group, but retailing of the vehicles will now be handled by GMSV, a company wholly owned by GM.
Supplies of the Camaro to HSV had already been stopped and now the supply of Silverados will be ceased as well.
Silverdos will continue to be converted and next year the Corvette will be distributed by GMSV.
HSV dealers will be able to sign up for a parts and service agreement to provide continuing support for HSV owners. GMSV will then approach dealers to see if they wish to become a GMSV dealer, but there is no guarantee that any dealer will be offered a GMSV dealer agreement.
Another issue that will leave a sour taste in HSV dealers’ mouths is that they are expected to return any deposits they have taken for the new Corvette. These deposits were taken under the HSV business which will no longer exist. Deposits will have to be returned to people who paid them, and they will then be redirected to a new website to register their interest, supposedly without jeopardising their chances of securing a Corvette.
Dealers still holding stock of Camaros will have to sell them without a brand umbrella and no assistance.
It all sounds like very shoddy treatment.