GM sues to recoup $450K in employee discounts

DETROIT — General Motors Corp. is cracking down on workers and retirees who it says have improperly extended employee discounts to non-relatives and have cost the automaker more than $450,000.

Lawsuits filed by GM say company audits found the discounts had saved buyers anywhere from $1,000 to almost $9,000.

The Detroit News says it isn't clear how many lawsuits have been filed.

The newspapers is reporting Saturday that some of the lawsuits were filed after this month's announcement by GM that it is temporarily extending such discounts to everyone on almost all of its 2008 and some of its 2009 models.

GM spokesman Tom Wilkinson says the timing of the lawsuits and the extended discounts was coincidental. He says that while such uses of employee discounts might have been overlooked in the past, the company now is closely watching its costs.

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Information from: The Detroit News, http://www.detnews.com

Comments

[poosta7]

Anybody who bought a GM product within the last 20 years should get a GM "best employee award" for having the loyalty of buying the inferior product that GM produces. Instead they have a hit list and are suing them.....ammmmmmmmmmmazing!

[poosta7]

I used to love GM products but now drive a Toyota Prius. The Prius was developed by Toyota fearing GM's lead in electric cars which (as we know) GM later killed. Its hard to fathom the mind numbing stupidity of the multi million dollar GM CEOs that spend all of their time resisting advances in new technology and increases in gas mileage.

[TrooAmerican]

this makes no sense.
They extend the discounts to everyone, and then sue cuz more people than their employees have been getting discounts.
i bet it will cost them more in litigation, then they'll get back from now disgruntled employees and citizens.
More people who wont bother to buy GM vehicles anymore.
Making enemies is a great way to do business GM.

[willisbones]

I have three Impalas and one Monte Carlo. Maybe I should think about Honda or Toyota next time.

[deluxebrand]

why...why..in god's name would you buy three impalas and a monte carlo....????

[hoopesaz]

Well, because they probably began the lawsuit before extending the discount to everyone was put in place. Does seem like a waste of time and money though. If employees violated company policy and essentially stole money from the company, they should be fired and just leave it at that. The reputation risk to the company alone isn't worth $450,000. Certainly a decision not well thought through.

[paulbikes]

See you in the history books, GM.

[strick9]

At the end of WWII even small towns had good, low cost public transportation. The automakers had increased production to include military vehicles for the war effort. Faced with a decision to cut production to pre-war level they chose to convert military production and market busses to replace electric trolleys. They would remove the rails in the roadway and the overhead third rail providing electricity. No thought was given to diesel smoke and oil leaks polluting our roadways. I have read that GM then bought many trolley lines removing the track and destroying the coaches. Providing poor service helped market the automobile in vast numbers changing streets and highways into lengthy parking lots, creating the smog that chokes our cities, and climate change. Unbridled economic expansion is destroying the earth.

No sympathy for GM

[UtterDisbelief]

Time to replace Mr. Wagoner.

[lunchbag]

Well, those realtives may have bought from other manufacturers instead of GM, erasing most of the profit GM made on those relative discounted cars GM sold.

Just brillant, plus the negative publicity from this will cost more then 450K to get customers to walk into GM show rooms.

[hoopesaz]

I agree with the reputation risk. But, lately GM has been losing money for every car sold, and I'm sure these were no exception. Fire the employees and put it rest.

[mfc62]

Desperate times call for desperate measures.............See McCain/Palin

[FlyTheBlueSky]

This is the same company that is spending millions marketing a vehicle that will not exist until 2010, while GM dealer lots are overflowing with inventory.

Here's a hint: spend money moving inventory instead of chasing down $450k from employees and marketing cars that do not exist.

[rh654]

GM needs to worry more about avoiding the real disastrous decisions they have made that has led to them losing so much money.

The idea of going after some employees for a few hundred thousand dollars - after having paid executives millions to make decisions that have led to billions of dollars of losses is just a glimpse into the disaster that is GM.

[RushLiberal]

Yes - German Motors wants their money back - it doesn't matter that they are paying their lawyers 2 Million dollars to get the 450 thousand back - it's the principle of the matter.

Go German Motors - Go!

[RushLiberal]

Oh, did the Poor CEO not get his bonus this year - Hey they helped sell you Shiity CARS.

You should give them Bonuses!

Well how about how General Motors making the American people pay for the bombed out General Motors factory way Back in WWII when GM had Auto factories in Germany that were Helping Hitler in WWII. That's right folks - GM was on the Germans Side - then they changed their name from German Motors - to - General Motors.

[stavros]

Oh please!
For 450 grand, their going to shell out a million in lawyer fees that will be written off as a business expense thereby keeping a few crooks wealthy while soaking it to taxpayers.
Good riddance when GM finally folds.

[smokeystover39]

Just one more reason to avoid buying anything made by the (used to be) Big 3. I only wish several big time law firms would represent the defendants pro bono and max out the news coverage. Corporate capitalism run amok - it needs to reined in.

[u193302]

Are they F**King joking...who is going to repay a $1K discount on some car they bought 2-3yrs ago