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GM sues to recoup improper discounts

Aug. 30, 2008 at 3:02 PM   |   Comments

DETROIT, Aug. 30 (UPI) -- General Motors has filed at least three lawsuits against company affiliates for giving discounts to non-relatives, attorneys said.

The Detroit News reported Saturday that even as the automaker temporarily extended its employee discount program to anyone, the company is suing employees, retirees and widows giving discounts to non-relatives, court papers say.

"What an irony, huh?" said attorney John Pieri who represents a retired autoworker in Buffalo, N.Y., who is being sued for $45,501. His client is accused of giving discounts to 13 people from 2004 until April 2007.

General Motors, based in Detroit, lost $15.5 billion in the second quarter, and not the company is doing all it can to recoup losses, including those who the company gave undeserved discounts that saved buyers $1,000 to nearly $9,000, depending on the vehicle's sticker price.

"In decades past, GM was so wealthy, I think probably a lot of these types of abuses might have been tolerated," GM spokesman Tom Wilkinson said. "We're obviously in a competitive situation and you get more focused on watching your costs."

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