Dealers fear 15k job loss post GM's exit, ask Govt to intervene

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Protesting dealers of General Motors, which is exiting the Indian market, today said around 15,000 people would lose jobs due to the auto major’s move and the government should intervene in the matter.

Terming the automaker’s decision to stop selling cars in India as “clearly thought out conspiracy”, the dealers along with their staff members also demanded adequate compensation from the company.

“This is a clear case of conspiracy. The company just kept us in dark while they planned to close operations in India,” a dealer, who has dealerships in Noida and Ghaziabad in Uttar Pradesh, alleged while protesting at Jantar Mantar here.

Around 40 dealers and their staff members today staged protest here against the company’s decision.

A dealer said the Government gave all kinds of waivers to the company when it set up shops in the country and now when they are leaving like this, someone from the government should get hold of them.

There is a loss of around Rs 1,000 crore for the dealers and around 15,000 people employed at the facilities are going to lose their jobs so the government should intervene in the matter, he said.

“We are writing to PMO and various ministries through FADA asking them to intervene in the matter,” the dealer said.

A majority of General Motors’ 96 dealers, which operate around 140 showrooms across India, are unhappy with the company’s compensation offer of just around 10 per cent of total investment made by dealers.

Another dealer from Jaipur said the company kept them in dark about the impending closure even as they kept on investing on their respective facilities.

“We had even sent our people to get training for the launch of new Beat. last year they held a meeting and showed us new models which were to be launched in India. So they kept us in dark all this time,” the dealer said.

“On top of it, there is take it or leave it attitude from the company. There is one way communication. All we wanted was a mutual agreement on compensation. We have been associated with the company for such a long period,” he said.         

Daily Pioneer
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