General Motors Dealers Protest Against The Company

Close to 96 dealers of General Motors in India with over 120 showrooms are protesting at Jantar Mantar against the meagre compensation that the company is offering.

The American company's offer of just around 12 percent of total investments they have made as compensation has not gone down well with the dealers.

Federation of Automobile Dealers Associations (FADA) President John Paul Kuttukaran told PTI, "Never before have automobile dealers resorted to a 'dharna' as a method of protest. But anguished by the decision of GM India to quit the domestic market without keeping their long-standing dealers in the loop, we have been forced to do this,"

This is the first time that GM India dealers have resorted to a dharna as a method of protest. The FADA has received required approval from the authorities concerned to stage a peaceful 'dharna' at Jantar Mantar, he added.

"GM dealers and their employees would be sitting on 'dharna' to draw the attention of the ministries concerned to the plight of the dealers and loss of over 15,000 jobs," Kuttukaran said.

The company has specified that if the dealers do not sell the company's existing stock of around 1,800-2,000 cars by December 31, 2017, they will not be entitled to the entire compensation.

The condition makes the job of dealers difficult as customers will not prefer to buy a Chevrolet car as the company decided to pull out of India's automobile industry.

The decision has caused not only a significant financial burden but emotional losses and put the dealers' future at stake. However, GM purposes to sign an agreement with its dealers to supply them spare parts for servicing their cars.

Dealers are keen that the government steps in as General Motors' global CEO Mary Barra had visited India in 2015 and met up with the Indian Prime Minister and declared a $1 billion investment in the country.

DriveSpark Thinks!

GM might not be able to sell cars in India; however, with the sudden decision to pull out from India, the Americal company should offer the right compensation to the dealers taking into account that even the customers who will continue to utilise the service centres.

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Read more on: #chevrolet
Article Published On: Tuesday, June 27, 2017, 14:30 [IST]
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