GM India dealers to suspend services, go on indefinite strike

After staging a protest against GM India in New Delhi yesterday, all 96 dealers are now planning to suspend service support across 142 outlets across India.

By Mayank Dhingra calendar 28 Jun 2017 Views icon8798 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
GM India dealers to suspend services, go on indefinite strike

Unhappy with GM not keeping them apprised of its decision shut down domestic sales in the country, authorised dealers of GM India plan to suspend service support.

The company has put clauses and targets which bind dealers to procure the existing vehicle stock left at GM's manufacturing facility in Talegaon in Pune, before it goes ahead and compensates them for the discount losses on the sale of the cars already in dealer stockyards.

According to one of the dealers, "Customers are demanding hefty discounts on the cars at the moment and GM India is only thinking about liquidating its own inventories. It has given us a deadline of July 15 to sign up to pick up more cars, so as to be eligible for the losses on our existing stocks. With no major demand for Chevrolet cars in the market, there is again a huge risk of investing more into this dead stock."

Moreover, the company has devised a standard formula to reimburse the infrastructural investments of the dealers which, after including the large depreciation values in place, amounts to less than 5 percent of the total money on stake, which ranges between Rs 7-10 crore per dealership.

"We are not a third world country anymore and want to be treated the same way as GM is handling this phase in Europe," said another dealer requesting anonymity. 

After putting across their concerns at Jantar Mantar in New Delhi yesterday, dealers are now contemplating adopting non-cooperation measures and holding up service support to customers across India and go on an indefinite strike to get the company's attention towards their righteous demands.

The dealers also seek intervention of the concerned ministries, including the Ministry of Road Transport and Highways (MoRTH). Apex body, the Federation of Automobile Dealers Association (FADA) is also approaching the Prime Minister's Office (PMO) to step in to take control of the unlawful approach being adopted by the company. 

 

RELATED ARTICLES
Modern Automotives targets 25% CAGR in forged components by FY2031, diversifies into e-3Ws

auther Autocar Professional Bureau calendar05 Jul 2025

The Tier-1 component supplier of forged components such as connecting rods, crankshafts, tie-rods, and fork bridges to l...

VinFast’s second plant in Vietnam goes on stream ahead of India factory

auther Autocar Professional Bureau calendar30 Jun 2025

Vietnamese EV maker’s second plant in its home market, which has a 200,000 EVs-per-annum capacity, will focus on produci...

Continental exits TBR market in India, shifts focus to car and SUV radials

auther Autocar Professional Bureau calendar13 Jun 2025

German tyre manufacturer aims to tap the double-digit market growth opportunity for big SUV and luxury car tyres which w...