GM sues to recoup $450K in employee discounts

[Hum]

DETROIT (AP) -- General Motors Corp. is cracking down on workers and retirees who it says have improperly extended employee discounts to non-relatives and have cost the automaker more than $450,000.

Lawsuits filed by GM say company audits found the discounts had saved buyers anywhere from $1,000 to almost $9,000.

The Detroit News says it isn't clear how many lawsuits have been filed.

The newspapers is reporting Saturday that some of the lawsuits were filed after this month's announcement by GM that it is temporarily extending such discounts to everyone on almost all of its 2008 and some of its 2009 models.

GM spokesman Tom Wilkinson says the timing of the lawsuits and the extended discounts was coincidental. He says that while such uses of employee discounts might have been overlooked in the past, the company now is closely watching its costs.

from: The Detroit News, http://www.detnews.com

[macrosslover]

I understand the reason why they need to do this as a company, but seriously I know they are spending more in legal fees than what they are going to get back. Either way I think the timing of the suit and their discount sale is bad for them.

[Mathachew Veteran]

I understand the reason why they need to do this as a company, but seriously I know they are spending more in legal fees than what they are going to get back. Either way I think the timing of the suit and their discount sale is bad for them.

Heh, I was thinking the same thing.