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

Immortality

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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.
 

Smashfist

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The rub is some dealers still have contracts with a few years to run.

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.

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.
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.
 

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Time will tell.
 

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

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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.

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.
 

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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?
 

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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.
 

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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.
 

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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.
 

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.. was about $700k gross profit a month. Not sure what net profit was though...
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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