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GM India dealers to meet over 'measly' compensation issue

Dealers of General Motors in India have decided to meet later this week to decide on the future course of action, including taking the legal route, against the American automaker over measly compensation.

A majority of 96 dealers, which operate around 140 showrooms across India, are unhappy with the company's offer of just around 12 per cent of total investments they have made as compensation.

"Some of the major dealer partners of the company will meet on June 24 in Delhi to decide on the future course of action against the company. They are totally dissatisfied with the way the company is dealing with them," a source told PTI on the condition of anonymity.

Around 20-25 major dealers of the company, with many of them running multiple dealerships across the country, will take part in the meeting.

"These dealers are totally unsatisfied with the terms of settlement that the company has offered to them. Each one of these dealers are feeling cheated and misled," the source said.

As per the conditions set by the company, a dealer who does not accept its offer by July 15, would only get 50 per cent of the compensation amount being offered.

"In case a dealer does not accept the offer by September 15, he won't get any of the compensation at all. Some of the dealers who have financial challenges may accept the deal being offered by the company. But there are many who are exploring ways to challenge the company," the source said. A dealer, who did not wish to be identified, said that the company totally misled them in terms of its future plans in the country.

The dealers, among other things, would also decide whether to file a case in India or go for a class action suit in the US.
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