The Morrison Government welcomes GM Holden's guarantee to negotiate with car dealers in good faith, after its decision to withdraw from the Australian market.
Minister for Industry, Science and Technology Karen Andrews said today's commitment from GM Holden to the Australian Competition and Consumer Commission (ACCC) is positive progress toward a fair compensation package for dealers and their employees.
"From the beginning I have said GM Holden must do the right thing by the Aussie dealers who've carried their brand - many of them for decades," Minister Andrews said.
"I wrote to GM Holden last week to express my concern that negotiations were becoming increasingly difficult, and reiterate the Government's expectation that they work to achieve a fair outcome.
"It is clear that GM Holden has gained significant benefit from Australian consumers, dealers and Government over the years.
"GM Holden needs to keep that in mind as negotiations progress - and should know the Australian Government and the ACCC are watching closely.
"I am very disappointed that the ACCC has found that GM Holden was placing undue pressure on dealers to accept their compensation package by 31 May."
The ACCC found this deadline was 'unnecessary and unfair' and has advised it was preparing for court action had Holden not changed its position.
Holden also committed to meeting its obligations more generally under the Franchising Code and the Dealer Agreement Dispute Resolution provisions.
Despite today's agreement, the ACCC will continue its broader investigation into Holden's engagement with dealers in relation to its withdrawal from Australia.
