Michael Filazzola

HOLDEN expects no more dealer sackings after it last week removed about 30 dealerships from its national network, causing – said new sales director Michael Filazzola – a mixture of anger, bewilderment, surprise and relief.

“Some dealers are happy that they are going, others are disappointed. It’s a mixed reaction,” he told GoAutoNews Premium.

Confirming that the steps were necessary to preserve the profitability of the network and reflect the brand’s new-found gentle slide into a single-digit market share.

Mr Filazzola said it was vital that in the closure of franchises – which will finalise at the end of the year – were based on a geographical spread to ensure customers retained access to new vehicles, and particularly parts and service facilities.

“We had to ensure that new parts and servicing arrangements would not disadvantage our customers,” he said.

“But at the end of the day, it’s business. We have to look after our customers and we now have to ensure we support our dealers.

“The same philosophy has been used with the closure of local manufacturing. We have to look after the employees who have been an integral part of Holden for decades.

“But we have no plans for any further reductions in our dealer network.”

Mr Filazzola, who said Holden would now not comment further on the reduction in the dealer network, said the company was looking at how it can improve customer relationships.

“We are looking at all new retail ideas, including shopping centre outlets,” he said.

“But these have to be taken on board with the customer in mind. The customer can’t be disadvantaged.”

Mr Filazzola said Holden was looking at the progress in new retail concepts including the way that Tesla sells its cars and how it may have advantages.

These dove-tail with marketing concepts and include a five-year warranty promotion on certain models, a feature that GoAutoNews Premium asked whether it could spread to include the entire Holden line-up.

Mr Filazzola said the five-year warranty may stay, though he thinks it may not be at the forefront of features for car buyers. He said the extended warranty eased any buyer concerns but believed that customers were already well protected by consumer laws and, in Holden’s case, a stronger customer care program.

Holden’s Customer Care team has been moved from Ballarat to the company’s Melbourne headquarters “to better engage with all staff,” said Mr Filazzola. He said the aim is to ensure all staff are aware of any customer issues with Holden and to quickly resolve problems.

Holden is also reigniting its 24-hour test drive program – Take Your Time Test Drive – that lets prospective customers trial the car in their own environment before committing to purchase. This program actually started last year but has had a relatively soft launch and is now being expanded.

Hyundai is also soon to roll-out a similar program, showing that innovations by Holden are already being countered by competitors.

Mr Filazzola said, of the products in the market, he was seeing sales progress and said customers were noticing “that we’re starting to get a family of products”.

On the Colorado, he said: “It’s growing month on month and we want to knock on Ranger and HiLux doors.”

On Astra: “Astra had a slow start because of pricing. Our competitors moved very quickly. Now we have the full range (of sedan and hatch) and the dealers have stock.”

On Barina: “We have adjusted the price and volume doubled. We have found the sweet spot.”

On Trax: “Sales are growing but slower than before. We are investigating this.”

By Neil Dowling