Late last month, General Motors filed suit against automotive dealer group Gurley Leep for fraud and unlawful conduct. Filed in the federal court of Iowa, General Motors claims that the dealership moved around a fleet of more than 1,400 new Chevy Malibus between its locations in Indiana and Iowa, and then claimed that the dealership would advertise the cars as “used” or “like new”.
The General states that it paid Gurley Leep tens of thousands of dollars as part of its cash incentive programs. The automaker claims that Gurley Leep’s actions hurt its bottom line.
General Motors didn’t provide comment to Indiana-local ABC57, while Gurley Leep provided the following statement to publication:
“In reviewing the notice, we disagree strongly with the allegations and consider them entirely unfounded and without merit. This action is unprecedented and will be vigorously defended. We have prided ourselves on having exceptionally strong relationships with the 30 manufacturer partners we have represented over the past 35 years. While dealers and manufacturers have disagreements from time to time, we are confident that when the facts are presented, the courts will find in our favor.”
The GM Authority Take
We’re not going to draw any premature conclusions, but feel it is important to note that automakers, including General Motors, offer bonuses and incentives to dealers post-sale when and/or if they sell a vehicle, or if they sell a certain amount of vehicles to reach a certain sales goal.
In addition, it might be worth mentioning that the GurleyLeep website at GurleyLeep.com does not list Chevrolet as one of the brands carried by the group as of this writing.
We’ll see how this one plays out.