GM India dealers seeking government intervention in the matter as the company as the company backtracked on its commitment in the country
General Motors India seems to be nearing towards more embarrassment over the compensation issue and also on its exit from the domestic market. GM India dealers protested at Jantar Mantar on 27th June over the insufficient compensation issue. Also, they are asking for government intervention as the American automaker has backtracked on its commitment of investing $1 billion in the country that was announced by GM CEO Mary Barra back in 2015.
Interestingly, this was the first time when automobile dealers in the country have taken such a method to protest. Around 96 dealers from across the country who own 120 dealerships were protesting at Jantar Mantar in Delhi. Automobile dealers association FADA has expressed its anguish over the measly compensation General Motors is offering to the showroom owners.
The American auto giant announced its exit from the domestic market couple of weeks ago as it has been facing heavy loss here. The company sold the Halol plant in Gujarat to its Chinese partner SAIC. However, the brand announced it will continue production at its Talegaon plant in Maharashtra for the overseas markets. Meanwhile it started offering discounts up to 30% on its products in order to clear out the stock of cars lying at the dealerships and at the manufacturing plant as well.
Speaking about compensation, GM India dealers who have invested heavily in the showrooms are about to face trouble as the company is not providing sufficient compensation on the discounts it is offering and the investment made by the dealers. Not only that, due to the decision of GM India around 15,000 employees are about to be jobless soon. The company has been accused of not taking any responsibility for these employees.
Now, being disappointed after discussing the issue with the automaker the dealers have started protesting. They are also mulling the possibility to file lawsuit against the company in US court. Dealers also accuse the company that it has been lying all along even despite knowing the decision of exit from the domestic market.