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Old 09-03-2008, 10:39 AM   #1
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Default General Motors sues over employee discounts

Posted Sep 2nd 2008 6:00AM by Zac Bissonnette <http://www.bloggingstocks.com/bloggers/zac-bissonnette>
Filed under: General Motors (GM) <http://www.bloggingstocks.com/category/gm/>

In that latest sign that the company is desperate for cash, General Motors is suing <http://www.usatoday.com/money/autos/2008-08-30-gm-discounts_N.htm> some of its employees and retirees, alleging that they improperly granted the company's family discount to non-relatives, costing the company $450,000 in sales.

Now hold up: last month GM announced that it was extending the employee/family discount to everyone, and it's simultaneously suing a handful of employees for extending the discounts to friends. Cognitive dissonance, anyone?

Given all of the problems the company has -- like billions in losses and a rapidly deteriorating balance sheet -- you'd think they'd have better things to do than chase down workers for a few thousand dollars in discounts. And then there's the fact that it's unclear whether GM really lost anything: would people have bought the cars without the discount?

It's puzzling -- and amusing -- that GM is going after employees who did exactly what the company is doing, but on a much smaller scale.

But in the world of farce and inadvertent parody, GM is the gift that keeps on giving.

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Old 09-03-2008, 11:30 AM   #2
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Default Re: General Motors sues over employee discounts

General Motors has partially created such abuses anyway because they grant six employee discounts per year to employees/retirees but they can only be used by family members. Why? Why can't they be given out by the employee or retiree to anybody? It's a fantastic incentive to get people looking at GM's products. Salespeople and employees/retirees want to be able to offer the discount to their friends. But what case does GM have here when they offer the discount to anybody anyway? It's senseless. GM is like a smaller version of the federal government, complete with all the clumsy policies and mismanaged operations.

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