HOLDEN will not be renewing the franchise agreements of 30 dealers from its 230-strong network as the car maker deals with declining sales ahead of its factory closure in October.

The company has confirmed the dealers have been told their franchise agreements will not be renewed when they expire on December 31.

It is believed that more than half the affected dealers are from metropolitan areas, although Holden will not say which outlets are affected due to confidentiality agreements.

 

Melbourne has the highest concentration of dealers and is likely to be hardest hit, but it is believed high profile Sydney dealer group Suttons may lose its dealerships in Waitara and Homebush. Suttons was contacted for comment.

Elsewhere O & H Holden in Kyogle, NSW, and McLeod’s Whyalla in South Australia have also reportedly lost their franchises.

 

Holden’s executive director of customer and dealer operations, Peter Jamieson, said the “difficult decision” was critical to the company’s transformation from local manufacturer to importer.

“Holden has conducted a review of our dealer network footprint as we transition out of local manufacturing and make the change to a full-line importer for the long term,” Mr Jamieson said.

“Taking into account a number of factors, the difficult decision has been reached that the size of the dealer network must be reduced.”