GM Inside News Forum banner
1 - 20 of 56 Posts

·
Registered
Joined
·
94 Posts
Robert Snell / The Detroit News

DETROIT -- Turns out General Motors Corp.'s employee discount isn't for everyone.

The automaker, which last week temporarily extended the perk nationally to anyone in a bid to boost sales and clear out inventory, simultaneously filed three lawsuits alleging fraud as the company cracks down on employees, retirees and widows giving discounts to nonrelatives, according to court documents. Along with other recent lawsuits, the automaker is suing for more than $450,000 plus costs and attorney fees.

"What an irony, huh?" lawyer John Pieri said. He represents a retired autoworker in Buffalo, N.Y., who is being sued for $45,501 and accused of giving discounts to 13 people from 2004 until April 2007.

Several retirees and lawyers said the lawsuits are an attempt to raise cash by a financially troubled company that lost $15.5 billion during the second quarter and provide insight into an unconventional way GM is trying to recoup revenue amid the slowest sales climate in more than a decade.

It was unclear Friday how many cases have been filed nationwide and a GM spokesman did not know how often the automaker files such cases. GM's lawyer, Michael Clawson, could not be reached. There have been at least nine cases filed in circuit courts across Metro Detroit in recent months.

The timing of the lawsuits, three of which were filed on or after Aug. 20, the day GM extended the employee discount to everyone, is coincidental, company spokesman Tom Wilkinson said.

"In decades past, GM was so wealthy, I think probably a lot of these types of abuses might have been tolerated," he said. "We're obviously in a competitive situation and you get more focused on watching your costs."

The employee-pricing program, which ends Tuesday, is a perk offered to employees as part of their benefits package. Any eligible employee, retiree or surviving spouse can use the discount to buy or lease six new or used vehicles each year, or extend the discount to relatives. Almost anyone on the family tree is eligible, from children to same-sex partners, in some cases, but GM is accusing the employees of profiting by giving the discount to people who they knew weren't qualified and for their own "financial gain."

http://ap.google.com/article/ALeqM5j3-xTE1dqFP9KmD_IWf6_Ix_XLVgD92SM0T01

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080830/AUTO01/808300368
 

·
Registered
Joined
·
8,904 Posts
WTF

We are suing customers and retirees now... :rolleyes:
That's a GREAT way to improve market share.
 

·
Registered
Joined
·
14 Posts
I was about to buy a new envoy but after seeing this Iam pretty sure I want nothing to do with this company. I might be heading back to ford or maybe another toyota.

I cant belive some idiot thought this was the perfect way to make $450k.
 

·
Registered
Joined
·
7,267 Posts
GM is slowly marching towards their grave. They are that desperate for their money? Most employers usually just make you repay for whatever misuse of employee discount one has, or deducting it from their paycheck, so why does GM have to waste money on lawyers and sue for it?
 

·
Registered
Joined
·
11,215 Posts
Uber bad PR.
Big time. This is stupid to recover less than half a Million. I know GM is hurting, but not that bad. How about just policing future purchases better. Re-couping this money will not help them. Plus considering how much it will cost to get the money back, they'll lucky if they end up in the black for the whole stupid fiasco. :mad:
 

·
Registered
Joined
·
9,097 Posts
Is this a joke? Rick Wagoners bi-weekly paycheck is bigger than that. Factor in lawyer costs and their return is probably half of that, not to mention the PR. It's too late to go back on your policy that didn't work out how you wanted it to. Count your losses (minimal) and change your policy so people cannot take advantage in the future.
 

·
Premium Member
Joined
·
4,637 Posts
This won't be good for GM PR. Rather than unleash there merry band of lawyers to get the money back. GM should look over these types of purchases more thoroughly in the future to spot signs of abuse
 

·
Registered
Joined
·
3,019 Posts
I think this is literally the stupidest thing I have ever heard.

They are offering employee pricing for everyone (in fact a commercial is running for it as I type this), yet they want to sue people who got employee pricing "improperly" earlier in the year? For a measly $450k?

I seriously think I could run this company better than Rick, and I am not joking or exaggerating.
 

·
Registered
Joined
·
1,065 Posts
im guessing(hopeing) they are sueing dealerships....not people.

if these employees and retirees gave out their discount by stating that someone was related when they weren't, they will not only be responsible for paying back the difference, but they also lose the employee purchase privilege. The dealer doesn't have to prove anything as they have no need to question someone who comes in with a GM authorization number.
 

·
Registered
Joined
·
11,215 Posts
Theft is a crime.
I can't believe so many of you would defend theft.
You forgot the around your post. People might think you're serious...
 

·
Registered
Joined
·
2,089 Posts
I don't see why people are making such a big stink about this. I see GM's just for their actions; although it is rediculous for them to make a fuss over half a million.

Where I work, we're given an Associate Discount. That discount is only for the associate and the associate alone; not for friends, not for family (unless you can be claimed by your parents). If you do use it for a friend or family member, you'll get fired, PLUS, possibly have to pay the company back for the discount given.

Eventhough, GM is offering Employee Pricing to everyone in celebration of it's 100th birthday, these incidents were probably happening during times when this event was going on.
 

·
Registered
Joined
·
5,554 Posts
My in-laws got employee pricing for their Jeep Compass from their close friend who worked for DCX back then. I thought there was a loophole to do it, maybe he did the same thing.

Anyway does not make sense to sue somebody for something that Big 3 gave away anywas along with dozens of billions.
 
1 - 20 of 56 Posts
Top