√Former Holden dealer wins court bid to see General Motors’ strategy plans

When General Motors announced it was closing Holden in 2020, it said it was “building” on a corporate strategy made back in 2015. Now one former Holden dealer has been granted access to those plans, claiming he was misled by executives about GM’s commitment to Australia.

A court has ruled a former Holden dealer is entitled to see internal strategic documents from General Motors, with the US car giant accused of misleading members of the Australian dealership network.

Anthony Altomonte, the managing director of the former Alto Holden and HSV dealership in Sydney, is pursuing the US-based parent company of Holden in a $9 million lawsuit, alleging General Motors had been planning to exit Australia since 2015 – while also making assurances to dealers and the public of its commitment to the market.

According to court documents, the president of General Motors, Dan Ammann, made a statement to Holden dealership representatives in Detroit in May 2017 speaking to the company’s “commitment to and confidence in the business in Australia”.

At the same time, Mr Altomonte claims Holden Managing Director Mark Bernhard privately told him the company was “100 per cent committed” to Holden and the Australian market.

Less than three years later, in February 2020, General Motors made the shock announcement it was shutting down the Holden brand.

“General Motors is taking decisive action to transform its international operations, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, drive significant cost efficiencies and take action in markets that cannot earn an adequate return for its shareholders,” the company said in a written statement at the time.

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“GM announced today that it would wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021…”

Counsel representing Mr Altomonte claim this statement is proof General Motors had begun to plan its exit from Australia from as early as 2015, in contradiction to the promises made by GM executives in the years following – and alleging those assurances were ‘deceptive conduct’ under Australian Consumer Law.

The NSW Supreme Court agreed Mr Altomonte is entitled to see internal GM documents in the five years prior to the exit announcement as part of his lawsuit, despite protests from lawyers representing the US car-maker.

“I am satisfied that the material which [Mr Altomonte] wishes to seek … has direct relevance to and is important for the purposes of the real issues in this proceedings,” said Justice Michael Meek, according to a report from website Lawyerly.

Counsel for General Motors claims the company’s unveiling of new Holden models, planned upgrades to its Lang Lang proving ground and emissions laboratory, as well as sponsorship deals and contracts with both local dealerships and partners such as Premoso – the parent company of the former Holden Special Vehicles, which today converts US Ram and Chevrolet pick-ups to right-hand drive for Australia under the Walkinshaw name – is proof it was committed to the Australian market at that time.

Furthermore, GM says if representations about its ongoing commitment to Australia were made – which it denies – then dealers were not misled, as the company had genuine plans to expand its business in Australia.

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In late 2017, Alto Holden and HSV signed on as a dealership for a further five years.

Mr Altomonte claims he would have sold or downsized his Holden dealership had he been made aware of plans he allege were in place deep inside GM from as early as 2015.

It’s understood this is one of three cases against General Motors currently before Australian courts, including a class-action by former Holden dealers.

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