GM Dealers to protest against company over inadequate compensation as company closes in India

After the recent announcement that GM will wrap up its operations for India, the plight of dealers has been ever growing. In order to convey their point, the dealers will do a silent protest at Jantar Mantar tomorrow and hopefully get the attention of the American car maker over the issues of compensation

By: | Updated: June 26, 2017 1:53 PM

General Motors, one of the largest carmakers globally, could not just fair well in India, one of the largest automobile markets in the world. Not only was the core reason for this a string of bad decisions, but not bringing in the right products at the right time also played a key role in the company's failure. This led to a number of dealerships to also shut shop, which GM assured of adequate compensation. However, according to a report by PTI, the 94 dealers that operate out of 140 showrooms in the country were offered only 12 percent of their investment, a measly figure to say the least.

After dealers decided to sue the American carmaker in the United States of America, they have also resorted to a silent protest, which will take place at Jantar Mantar tomorrow. FADA (Federation of Automobile Dealers Associations) has received permission from the authorities to stage a peaceful dharna at the location. Not only is the compensation one of the key reasons for dealers to make such a move, the loss of over 15,000 jobs due to GM's exit from India operations has also led to this. This will be the first time in India for automotive dealers to go on a protest.

Various dealership owners who have invested a considerable capital, as well as operational expenditure in their setups, would not be able to recover their basic costs, let alone compensate their manpower for this loss. GM started in India in 1996, and in over two decades, the brand introduced two manufacturers, namely Opel and Chevrolet. From the Opel brand, the company introduced the Astra, Corsa and the Vectra.

Also Read: GM engineered their own downfall in India, Find out how

These did strike a chord for some time, however, in a market like India, aftersales also plays a key role. Lack of service centres, as well as a delay in service schedules along with limited spare part availability, also contributed to this. Then the company introduced Chevrolet with the Optra as well as the Optra SRV and other products from its lineup. All the products except for the Spark and the Beat hatchback did not bear fruit for the American giant. Chinese cars from SAIC were badged as Chevrolets and sold in India. Being outdated in almost all areas, these cars led to the demise of the company in India.

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