GM Sues Over Employee Discounts

September 2, 2008
Watching its finances with ever-closer vigilance, a financially pressed General Motors is filing suit against workers and retirees who improperly extended their employee discounts to non-relatives.

The company claims these actions have cost it more than $450,000, which it is trying to recoup through the lawsuits.

On an per-transaction level, audits revealed that the non-family members benefited from discounts ranging from $1,000 to $9,000 per vehicle.

Interestingly, according to The Detroit News, some of the lawsuits were filed after GM extended employee discounts to the entire buying public on nearly all of its 2008 models and some of its 2009 models. GM Spokesman Tom Wilkinson called this timing coincidental, and also remarked that while the company might have overlooked loose controls on these perks in the past, it is now watching costs more closely.

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