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GM facing lawsuit from Chevrolet dealers in France

Published by on Apr 1, 2014 in News Leave a comment

Chevrolet France Lawsuit

Later last year, General Motors announced their withdrawal from the European market and according to Automotive News, this might bring them an important lawsuit in France. The French association that protects the interests of dealers, service providers and auto suppliers (CNPA) has announced they will start a lawsuit against the American company to request for financial compensations.

Even though General Motors officials said they’re not aware of any legal actions against them in France, the dealers’ association announced they’ll ask for financial compensations from the Detroit carmaker for canceling the franchise contracts. The dealerships made significant investments to join the Chevrolet network and are angry for all the money they lost after General Motors made the announcement. Another major problem are the compensations these dealers have to pay their employees which will be fired (these compensations are not covered by GM but by each dealership).

At the moment, there are 133 Chevrolet dealerships in France, but CNPA hasn’t revealed how many of them will join the legal action. Throughout Europe, the total number of Chevrolet dealerships is 1,900 and GM clarified that only new car sales will end in 2015, because all service activities will continue. In 2013, Chevrolet sales dropped an average 18 percent in Europe, with a 13% recorded in France.

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