Mark_Bernhard

GM HOLDEN chairman and managing director Mark Bernhard has committed to maintaining the car-maker’s 230-strong dealer network, despite the brand’s declining market share.

The car-maker has one of the largest dealer networks of any manufacturer in Australia, but its market share has slipped by 10 per cent over the past decade as consumer tastes shift and companies such as Mazda, Hyundai and Volkswagen bite into its sales.

In 2005 Holden sold 174,464 vehicles in Australia and held a 17.7 per cent share of the market, trailing only Toyota, but a decade later the car-maker had slipped to 8.9 per cent share in 2015 with 102,951 sales.

So far this year Holden has an 8.0 per cent share of the Australian market with 62,748 sales, a 7.0 per cent drop compared with the first eight months of 2015.

Speaking with journalists at a media event in Melbourne last week, Mr Bernhard said there were no plans to reduce the number of sales and service outlets around the country.

Holden on: Some of Holden’s 230 dealerships are starting to look long in the tooth but a visual update is a while off.

“We are comfortable with the network that we have got,” he said. “You look at dealers and they are well dispersed around the country and one of the strengths we have is that dealer network.”

Mr Bernhard acknowledged that the company would not be able to sustain 230 dealers with a market share of eight per cent, but said the influx of new product in the coming years would help lift its sales and share.

“It is absolutely important, and part of us broadening our SUVs and bringing in cars like the Astra gives us an opportunity to increase market share,” he said.

Holden has committed to completely refreshing its model portfolio by 2020 and will launch the Trailblazer, Astra, updated Barina and Trax, a Captiva replacement, the next-generation Commodore and the seven-seat Acadia SUV within two years.

Mr Bernhard said the dealer network was enthusiastic about the product rejuvenation and the plan to rebrand Holden.

“We had our national dealer meeting two weeks ago and they walked away unbelievably excited by what we took there. One of the dealers said to me, ‘Best meeting in 15 years’.

“They’re just really excited. Particularly around product but also around the brand and how we are moving the brand and starting to broaden that appeal to a much wider audience but at the same time respecting the heritage and the customer base that we have today.”

While Holden has rolled out its new branding strategy that includes a refreshed logo, new-look marketing material and social media and television advertising, Mr Bernhard said it was unlikely there would be any change to the overall look of Holden dealerships in the short term.

“We need to do some work around the future dealership and what that means, which I think effectively every brand needs to do as technology is changing,” he said.

“So we are going through that process. There is always investment from dealers in their businesses. How we go about it we don’t have any firm plans yet.”

He added that a fresh new look for dealerships would “be progressed over the next few years” but added that no start date was locked in.

Holden general manager of marketing communications and digital Natalie Davey told GoAuto that changes in the dealership would be more than cosmetic, adding that it was about changing the customer experience.

“We have to start the journey and we are starting the journey and the easiest and quickest way to do it is from a marketing perspective,” she said. “But it is not about a logo change, it’s what is the experience that people want to have in the dealership and how are we actually going to change our model to accommodate that.”

Ms Davey said dealership models had to change as consumer’s purchasing behaviour changes.

“Ten years ago, on average, you would go into three dealerships before you determine what car you go with. Now you go into 1.2 dealerships because everyone does their research online. So the role of the dealership has changed as well.”

By Tim Nicholson