GM Sues Chicago Dealership Group Over Breached Agreement Following Sale
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General Motors has filed a new lawsuit alleging a breach of an exclusive-use agreement with Grossinger Auto Group. AutoCanada purchased the dealer group based in the Chicago area, and Grossinger is since out-of-business.
The contract, signed in 2008 between GM and Grossinger, stated for a 25-year exclusivity period Grossinger would “actively and continuously conduct dealership operations for the existing model lines at the dealership premises.” With AutoCanada’s purchase of Grossinger, the now-defunct group failed to transfer the exclusivity agreement.
Now, GM demands $4.5 billion in brand-related losses in the lawsuit. Automotive News reached out for comment but did not hear back from any party involved in the suit. AutoCanada agreed to purchase nine of Grossinger’s 10 stores last October and closed the deal this past March.
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If a Lexus dealership starts to sell a Korean Luxury brand at the same location, you can bet that Toyota/Lexus will make a case of it.
If this deal had not been signed, GM would have opened other nearby new dealerships.
The dealer did sign this agreement for a specific reason.
The German dealership company “mobilforum” group opened a new dealership site where both Cadillac and Infinity are being marketed, but with separate showrooms, in the Kesselsdorf neighbourhood of Dresden, the capital of the federal state Saxonia (Sachsen):
https://www.mobilforum-gruppe.de/cadillac/bau-autohaus-kesselsdorf/
The company “mobilforum-gruppe” deals with BMW, Cadillac, Chevrolet, Corvette, Infiniti, and Mini.
I do not understand the problem.
Did the new company no longer sell GM cars, or what do they worry about?
It’s very clear. The exclusivity contract wasn’t transferred during the sale process.
That means the 9 sites Autocanada bought could elect which brands they sell, GM or otherwise.
If the exclusivity contract was transferred it would have meant GM still controlled supply (ie brands) to those sites until 2033.
Grossinger is a loser and will always be a loser. Only 4.5 million, G.M should have sued him for more than that.
that man ran his family business into the ground by hiring a bunch of liabilities.
wake up Grossinger or maybe its too late. I pray that no one works for him at his used car lot. let him be the one to sell and do the finance paper work.
Erhm… I see “$4.5 billion”…muha muhahaha muhahahahaha
[Dr. Evil from Austin Powers reference]