Russian GM Dealers Want More Before Automaker Leaves Country
General Motors dealers in Russia are unhappy at the compensation the automaker is offering as it pulls out of the country, Wards Auto is reporting.
Russian dealers want more than it cost to start their dealerships, the report details. Negotiations stalled on how much GM would discount service contracts for thousands of GM cars currently on the road, and how much GM would offer dealers who need to change their businesses after GM leaves the country. The latest round of negotiations stalled in July.
GM sold more than 247,000 Chevrolet, Daewoo, Opel and Cadillac cars in Russia in 2014, which was down more than 24 percent from the prior year. This week, Cadillac CEO Johan de Nysschen said the luxury automaker would focus on sales in Russia — and also China and the Middle East — even after GM announced it would be leaving that country.
According to the report, the biggest issue between GM and its dealers in Russia may be the service contracts for the hundreds of thousands of cars on the road. GM has asked that Russian dealers provide half of the 20 percent off of spare parts that its offering consumers for service.
Russian dealers are hesitant to take GM to court because that may void the service agreement in place and leave service centers on the hook for thousands of cars that may need future repairs.
GM said it will still import Cadillac, Corvette, Camaro and Tahoes into Russia after it pulls out of the country.
More by Aaron Cole
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In post-Soviet Russia, General Motors screws you.
I'm sure the Obama administration will have no issue if GM works well with the Russian dealers !?!
"GM said it will still import Cadillac, Corvette, Camaro and Tahoes into Russia after it pulls out of the country." How exactly is this compatible with "pulling out"? They'll need dealers, don't they?
Government Motors leaves Russia after Putin snubs Obama. What a surprise! Goodbye Russia Hello Iran and Cuba! Do German car makers also leave Russia?