Australia’s Watchdog Drops GM Holden Probe Over Dealer Conduct

The Australian competition regulator lambasted US carmaker General Motors’ local unit over its abrupt withdrawal from the market last year, but opted to take no formal legal action against it, Reuters reported. 

The Australian Competition & Consumer Commission said its investigation into GM Holden Australia’s treatment of its dealers left it with “concerns”, but decided not to pursue it after many dealers accepted compensation, while some opted for private legal actions.

General Motors in February 2020 announced plans to wind down its antipodean operations as part of restructuring of its global business.

However, Holden’s dealers claimed the local unit was aware of withdrawal plans months before the public announcement, during which it continued to approved new dealerships, and “encouraged some dealers to continue to invest in their dealerships”, the regulator said in a statement.

“The behaviour by Holden has done much to damage the General Motors brand in Australia, and perhaps beyond,” ACCC Chair Rod Sims said.

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