GM India dealers to move court for unfair compensation offered

GM India dealers to move court for unfair compensation offered

Even as General Motors India announces stoppage of sales in the country, dealer in India are up in arms against measly compensation being offered.

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Over 70 dealers of General Motors India are planning to make a representation at the company headquarters in US. They claim that the compensation offered to them against investments is the matter of dispute and the dealers state that they will take legal counsel in the matter and could even move court against General Motors and subsidiary Chevrolet Sales India Private Ltd (CSIPL).

General Motors India on their part are offering hefty discounts on its models. The company has around 1,800-1,900 vehicles at company dealers besides 800 cars in stock with the company. Discounts to the tune of 30% are being offered on these models so as to liquidate stocks. The company assured its dealers that they would compensate them against these losses solely on condition that all stocks were sold which also included those lying at the plant.

General Motors stated that 10% of compensation amount of stocks will be credited to dealers within 7 days of the announcement while 30% of the amount will be given on condition that dealers achieve 50% of wholesale targets by 20th June while those achieving 100% targets by July 10th will be given balance 60%.

With the announcement to stop sales in India already out in the open, dealers are finding it difficult to sell stocks. Financial institutions have blocked funding while customers are also shy of making new purchases of GM models with the company announcing plans to stop selling its vehicles in India by the end of this year.

Kaher Kazem, GM India Head.

GM on their part have assured buyers that they would honor all warranties and offer after sales service support to customers while the Detroit based automaker will continue to produce vehicles such as the Beat hatchback, Cruze sedan, Enjoy, Tavera and Trailblazer from its Talegaon plant in Maharashtra though exclusively for exports.