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PROMINENT Adelaide Holden dealer Jack Torcaso, who closed his Plaza Holden last year, said he is facing the possible closure of his remaining Metro Holden outlet because he believes the home-grown Australian car-maker is rationalising its Adelaide metropolitan dealer numbers.

Mr Torcaso said he – and the other Adelaide Holden dealers – have been told by Holden that a decision on renewing their franchise agreement beyond 2017 will be announced in July.

The rationalisation of dealerships in South Australia follows a similar move in Sydney in 2014 that included the removal of the city’s north-shore and south-shore dealerships, replaced with one at the centrally located Chatswood.

The decision to reduce Adelaide dealerships is likely based on an expected market-share reduction as Holden winds down production at the city’s Elizabeth assembly plant.

Traditionally, market share is higher in markets that host company plants. For years, for example, Mitsubishi enjoyed higher sales in Adelaide compared to other cities because its factories were located in suburban Lonsdale and Tonsley Park. This generated employee, supplier and government loyalty to the local cars made there.

Mr Torcaso said he wasn’t against the idea of reducing dealer numbers but was concerned about the indecision surrounding any future closures. He was also angry that Holden had earlier promised no reduction in dealer numbers.

“What that means is I could have a renewal for one year, for three years, perhaps five years – but no longer. Perhaps my agreement won’t be renewed at all and they’ll close me down,” he told GoAutoNews Premium.

“Under the franchising code of ethics, they should have told me about this before I was asked to rebuild the dealership three years ago.”

Mr Torcaso has been a Holden dealer since 1976 at Bayside Holden in Frankston, Victoria, before moving to Adelaide and opening his first of two franchises in 1986. He said he was told last year to close his Plaza Holden dealership in Valley View, to Adelaide’s north-east. (Click here to view seperate story)

He was told by Holden that it was part of a rationalisation of dealers and that the PMA would be centred at Salisbury. Peter Page Holden and Metro Holden were asked to tender for the new dealership but Mr Torcaso said he didn’t want a new dealership and did not answer the tender.

Mr Torcaso told GoAutoNews Premium he believes that Holden wants to get rid of 30 per cent of metropolitan dealers.

GM Holden, when questioned by GoAutoNews Premium, vehemently denied that it would close 30 per cent of its metropolitan dealerships.

GM Holden director of communications Sean Poppitt said: “It is utterly and categorically untrue that any significant rationalisation of the network is planned.”

“As with any brand, the network footprint can ebb and flow and a very small number of changes may be necessary over time but any suggestion beyond this is false.

“Our extensive dealer network, right across Australia, is a major strength for the Holden brand and will continue to be as we transition from manufacturing to a fully-imported vehicle range.”

Mr Poppitt said Holden and its dealers were “committed to Australia and our customers for the long term”.

Holden in December ended its association with one of South Australia’s oldest dealerships, the 87-year-old Claridge family business that has sold Holden since the brand’s 1948 inception. The Claridge family sold the property based on personal decisions and Holden said it was “very sad to see them leave”.

The Claridge property sold to CMV Group which will now renovate it to sell Mercedes-Benz cars and commercial vehicles.

Mr Torcaso said that: “Holden has an eight per cent market share and enough dealers for a 16 per cent market share.”

“The way they are treating dealers and getting rid of dealers is harsh,” he said.

“It’s the German way of thinking – without any care for their staff and being more interested in business rather than people.

“There is no security in having a Holden dealership. They made it very clear to me about Plaza Holden, saying they wanted a brand-new dealership at Salisbury and it was between me and Peter Page to run it.

“Sadly, Peter Page passed away in November. I was forced to close Plaza Holden as part of Holden’s plans.

“There is still no decision about Salisbury and I’m very happy I didn’t commit $9 million to $12 million on a new site so far away from my existing customers.”

Mr Torcaso said he cleared his Holden stock and signed up with Haval, Great Wall, Mahindra and Mahindra Agricultural.

“I haven’t looked back. These new franchises are supportive – they paid for all the signage, television advertising and so on – and I am the sole dealer in South Australia for five years,” he said.

GoAutoNews Premium asked for comment from Paul Page, principal of Peter Page Holden, but our requests were not answered.

By Neil Dowling

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