Holden prices to be slashed by up to $17k in mass ‘fire sale’ according to leaked memo – and dealers expect all stock to be gone within ‘weeks’
- Holden cars will be discounted by more than $17,000 following brand’s collapse
- Prices of the Trax SUV and Astra hatchbacks will likely drop below $15,000 each
- General Motors on Monday announced the end of the iconic Australian brand
A memo from Holden’s head office to dealerships indicates they will slash prices on all cars by as much as $17,500 to clear stock ahead of the company’s closure, according to reports.
The discounts were expected to begin in March, with the mid-size Equinox to be cut by $10,000 and the Commodore, which was discontinued last year, to be reduced by $7500.
The Trax SUV will likely drop below $15,000 each after GM announced the collapse of the Holden brand
The discounts come after General Motors announced on Monday that the Holden brand will be discontinued after this year.
Dealers who spoke anonymously to Car Advice believe the discounts should help clear all remaining showroom models.
‘It won’t take long,’ one car dealer said.
‘I reckon everyone will be sold out of their Holden stock within weeks not months. No-one wants to hang onto them now, we want to get rid of them as quickly as possible or even put them on the used-car lot.’
The Holden Astra, which was discontinued last year, will also drop below $15,000
GM committed to providing compensation to Holden dealers to allow them to transition to other brands or close down.
While the discounts are good news for bargain hunters, or those seeking to buy a collectors’ item, it could cause tension with those who had ordered a Holden at full price prior to the announcement.
Those buyers might be able to renegotiate prices, but one unnamed dealer told the publication that prices in orders are legally binding.
‘If someone has ordered a car, a dealer can enforce it. After all, the dealer didn’t do the wrong thing here.’
He also said many dealers would be unable to refuse the cash bonuses offered by GM.
‘People have to put it all in perspective. Holden is saying this money has to cover any losses a dealer might have to wear on their used car stock, demonstration models or any trade-ins they’ve committed to.’
Daily Mail Australia has contacted General Motors Holden for comment.
General Motors on Monday announced they were ‘retiring’ the iconic Australian brand by 2021.
General Motors on Monday announced they were ‘retiring’ the iconic Australian brand by 2021 after plunging domestic sales for Holden vehicles (stock)
It said servicing and parts would be available for a decade thereafter.
GM and Holden have pledged to work closely with all their workers offering generous redundancy packages to about 600 staff across Australia and New Zealand. Most will be gone by June.
‘We are all hurting,’ Holden interim Chairman and Managing Director Kristian Aquilina said in an open letter published in newspapers across the country on Tuesday.
The decision to close comes amid plunging domestic sales with demand for Holden vehicles down by almost 29 per cent to just 43,176 in 2019, in a total market down just eight per cent.
Holden vehicles sit at a dealership in Adelaide. On 17 February, General Motors announced that it would retire the Holden brand in both Australia and New Zealand
Car Advice have seen a confidential Holden bulletin which outlined the plans to ‘move quite quickly’.
The Holden dealers would also be offered counselling alongside the compensation.
‘We are concerned to ensure your personal and emotional wellbeing and will be making available counselling services should you require them,’ part of the bulletin signed by Holden boss Kristian Aquilina said.