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Say one thing, do another: 5 years support, not 10...

Discussion in 'VF Holden Commodore (2013 - 2017)' started by Big Red VF-SII Go-kart, Mar 19, 2020.

  1. Big Red VF-SII Go-kart

    Big Red VF-SII Go-kart I love puddles.

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  2. Ron Burgundy

    Ron Burgundy Well-Known Member

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  3. immortality

    immortality No more smoky bacon :( Staff Member

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    They just started advertising Holden NZ final sale but I could swear they were offering only 3 years free servicing. TBH, I really can't see many Holden dealers staying open to just service cars.
     
  4. Forg

    Forg Well-Known Member

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    No, but there'd be a lot of dealers trying to expand the other brands they sell, and still servicing those other brands so they'll still have a mechanic's workshop. The couple of times I've been into the near-ish Holden dealer for recalls, I've been the only Holden customer among the Hyundai majority.
     
  5. Paul Smedley

    Paul Smedley Member

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    Correct... Dealer franchise agreements were always for a 5 year period at a time.... Doesn't (necessarily) mean they won't still offer parts/support for 10 years....
     
  6. Skylarking

    Skylarking Well-Known Member

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    The rub is some dealers still have contracts with a few years to run. And what Holden is offering is a 5 year contract from the announcement date which means 2025.

    So for those dealers with say 3 years left on their current contract, they are only being given an extra 2 years of what can only be described as a low level of certainty...

    I’d also be peeved at such.
     
  7. Ron Burgundy

    Ron Burgundy Well-Known Member

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    Not planning to go tobthe dealer any more anyway...
    Still have more than a year of warranty left so will just go to my local guy for service...
     
  8. Paul Smedley

    Paul Smedley Member

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    Not saying the dealers shouldn't be peeved, just saying that the gist of the article is typical of Josh Dowling. A 5 year term on a dealer service agreement does not (necessarily) equate to only 5 years of support from GM. For me, it means that after 5 years, they will review agreements, with probably less dealers being required before offering fresh 5 year agreements.

    It makes sense that in 5 years time, there will be less Holdens on the road, so less service agents required.
     
  9. immortality

    immortality No more smoky bacon :( Staff Member

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    Doesn't say much for the life expectancy of the ZB.
     
  10. Skylarking

    Skylarking Well-Known Member

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    Understand what you are saying but since many dealers are independent of each other, presumably their existing contracts would have been signed at differing times as they entered the industry and therefore ending at differing times (be they 5 year contracts).

    GM/Holden should honour their current contracts but if they want to terminate them, then they should abide by the terms and abide by the clauses. But they seem to be wanting to bundle the contract termination with new contract negotiation... sounds a lot like a “I want to do a deal for you” salesman’s pitch which we all know is code for “I want to screw you”.

    GM wanting all contract terms to line up with the same contact end dates can only be for later leverage issues so they can again bully the dealers and screw them over...

    The issue of how our cars will be maintained is somewhat seperate to the business issues between dealers and a bully of a US Corp.

    As a Holden Motorsports owner, I absolutely don’t feel confident that any injector issues or other poorly designed or built components will be addressed under warranty as they were for some owners even few months ago...

    If GM is screwing Holden dealers, we owners are next in line :rolleyes:
     
  11. immortality

    immortality No more smoky bacon :( Staff Member

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    ^^^^ Spot on. Many dealerships have been difficult to deal with for recalls and even admitting there is a problem (we've all seen the multiple threads on this forum). I can only imagine it will get worse because of the hoops the remaining service centres will need to jump through to get authorisation to fix from GM rather than Holden in Australia.

    Statutory requirement is one thing, service with a smile is something completely different.
     
    426Cuda and Ron Burgundy like this.
  12. Smashfist

    Smashfist Active Member

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    Contracts that are being terminated due to Holden no longer existing as a new car company.

    Dealer agreements have always been 5 years max, nothing new to see here.

    Shouldn't make much of a difference. Holden transitioned to using the global dealer management system based in Detroit (with minor local input) about 8 years ago.
     
  13. immortality

    immortality No more smoky bacon :( Staff Member

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    Time will tell.
     
  14. Skylarking

    Skylarking Well-Known Member

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    There is really no need to dissolve the legal business entity that is Holden Pty Ltd, if that’s what you’re implying is occurring. It can simply be downscaled.

    If dissolving Holden Pty Ltd is indeed occurring, it’s simply a legal and accounting manoeuvre to limit liability and thus exposure... In other words it’s a screw you move...

    If the old legal entity is being tossed and a new contract with a new business entity are being created with dealers going forward, well that’s just crystallised the screw you legal and accounting games.
     
  15. Smashfist

    Smashfist Active Member

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    That's not what I'm implying but the existing agreements are no good when they specify things such as new car showrooms, access to new car inventory etc. The existing agreements are being exited early with new fixed ops only contracts being put in place.
     
  16. immortality

    immortality No more smoky bacon :( Staff Member

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    Seeing that you are in the "know" for the average dealership, what are the percentages in profit between new car sales Vs parts/servicing?
     
  17. Smashfist

    Smashfist Active Member

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    New cars are a small part of it. I was at a dealership that was selling ~50 new cars a month at a couple grand gross profit per vehicle on average. On a good month the service department would gross ~$180 - $200k and parts would be ~$120 - $130k. Overheads were a killer though, my service department would make ~$30-$40k net profit monthly if corporate didn't shuffle stuff around and dick expenses into us that shouldn't have been there.

    I heard towards the end (i.e. in the last 6 or 8 months) the new car sales figures were lucky to break 15-20.
     
  18. immortality

    immortality No more smoky bacon :( Staff Member

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    So new car sales are 15-20% of the total profit of a dealership? If someone turned around and decided to cut my wages by 15-20% I'd be mighty pissed and if I was running a business 15-20% loss in overall profits could easily but a business under.
     
  19. Smashfist

    Smashfist Active Member

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    Depends on the dealership. We had an active used car department (70 or so units a month) and finance/insurance made a killing. Our budget give or take (depending on # of days in the month etc) as a dealership was about $700k gross profit a month. Not sure what net profit was though, I didn't see any other department's loadout of expenses.
     
  20. Skylarking

    Skylarking Well-Known Member

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    Haha, if the accountants had done their job setting up the international subsidiary in that tax free jurisdiction correctly, then net loss would be immeasurable :p

    (a joke in case it’s not clear)
     

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