The Man
Club Member
Got this from the Macomb Daily, GM is suing a guy for giving out his family plan.
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http://www.macombdaily.com/stories/060808/loc_local03.shtml
Ex-employee denies he used discount for anyone but family
By Jameson Cook
Macomb Daily Staff Writer
General Motors is accusing a former employee of taking advantage of the family discount program by letting non-family members buy more than a dozen vehicles at discounted prices.
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GM said its lawsuit against the former workers is part its widespread effort to crack down on alleged policy violators.
Stephen Puchalski, 37, of Macomb Township, responded he has done nothing wrong and argued that 10 of the 16 vehicles were purchased at a dealership without his knowledge.
In a lawsuit filed May 29 in Macomb County Circuit Court, GM claims Puchalski purchased 16 vehicles through the GM Employee Vehicle Purchase Program from 2004 through April 2007. The sales resulted in GM losing $100,000 in profits, the lawsuit claims.
"General Motors has declared these sales fraudulent and has requested the discount be paid," the Detroit automaker says in the lawsuit. "Defendant has failed and refused to repay the discount despite repeated attempts requesting that he do so."
Puchalski's attorney, Robert Sogge, said that six of the vehicles listed by GM were properly purchased by family members, and Puchalski knew nothing about the other 10, all of which were bought at Don Gooley Cadillac on Nine Mile Road in St. Clair Shores.
"The bottom line is they're picking on Steve, they're singling him out," Sogge said.
Puchalski said he believes someone - possibly a salesperson - obtained his employee number and used it without his knowledge.
The Don Gooley general manager could not be reached for comment Friday.
Sogge said he will file a motion to include the Don Gooley dealership as a third party in the lawsuit.
Puchalski said he left GM in 2007 on his own.
GM says the lawsuit is part of a widespread effort to crack down on those who violated program rules that limit the sales to employee's spouse, children, grandchildren, parents, stepparents, grandparents, siblings, stepchildren, step grandchildren, various in-laws, and "same-sex domestic partner."
GM spokeswoman Geri Lama said in an e-mail that the company last year began sending letters to some employees asking them to prove that family members and relatives bought vehicles.
"Improved database technology over the past year has allowed GM to better identify abusers of the system," Lama says. "We won't talk about specific numbers, but obviously the recoveries could be substantial."
David Cole, chairman of the Center for Automotive Research in Ann Arbor, said he has heard about the enforcement effort and believes it is part of automakers reducing all discounts, such as rebates, zero-percent financing and fleet sales.
"They're trying to cut back on incentives in all forms and trying to increase profitability," he said. "The old mentality, 'Get the metal moving,' doesn't have any value if you're losing money. The objective is to be more disciplined. A whole new world is emerging."
Cole said GM isn't alone in the effort as Ford Motor and Chrysler Corp. also are reducing incentives to improve profitability. It also comes at a time the automakers are reducing production of the highly profitable pickup trucks and SUVs.
Sogge pointed out that GM in past years has encouraged the discount program. In fact, GM for a several-month period in 2005 extended the family program to everyone.
Published articles - including one GM endorsed through PR Newswire - say that GM expanded the program. Ford that year matched the program, according to reports.
"I don't see how GM is complaining about selling vehicle," said Sogge, who contends the auto dealerships, not the corporation, suffer the most loss from the discounted sales.
Lama would not reveal how many cases have been filed as part of the effort, but she said most cases have been filed in the tri-county area. She pointed out abusers are a tiny minority, less than 1 percent, of those eligible.
She said the discount program has been in its current form since 1999. About 350,000 to 450,000 vehicles per year have been purchased, she said. About 860,000 employees of GM and GM-affiliated companies are eligible, including those at Delphi and Hughes.
GM says in the lawsuit that it sent two letters to offenders warning them they have been flagged as a potential abuser. A May 8 letter from the law firm Hardy, Lewis & Page, representing GM, to Puchalski warns him to pay $100,140.29 by Monday, June 9, or face a lawsuit.
According to GM, 11 of the vehicles were purchased at Don Gooley and five at other dealerships. The average discount was $6,259, based on GM records provided in the lawsuit.
The vehicles ranged at the high end from a vehicle listed at $65,460 purchased at Don Gooley for $58,200 for a "sibling" in March 2006, to a $21,975 vehicle purchased at Hamilton Chevrolet for $19,594 for a "parent" in December 2004, according to the records.
The biggest discount was about $16,000 on a $56,500 vehicle bought at Somerset Pontiac-GMC Truck in January 2006 for "self."
Rogge said only one of the six vehicles purchased legitimately was bought at Don Gooley and the rest of legitimate vehicles were bought at Hamilton, Somerset, Jim Causley (two purchases), and Ed Rinke Chevrolet.
GM in the lawsuit accuses Puchalski of fraud and misrepresentation, conversion and breach of contract.
--------------------------------------------------------------
http://www.macombdaily.com/stories/060808/loc_local03.shtml
Ex-employee denies he used discount for anyone but family
By Jameson Cook
Macomb Daily Staff Writer
General Motors is accusing a former employee of taking advantage of the family discount program by letting non-family members buy more than a dozen vehicles at discounted prices.
Advertisement
GM said its lawsuit against the former workers is part its widespread effort to crack down on alleged policy violators.
Stephen Puchalski, 37, of Macomb Township, responded he has done nothing wrong and argued that 10 of the 16 vehicles were purchased at a dealership without his knowledge.
In a lawsuit filed May 29 in Macomb County Circuit Court, GM claims Puchalski purchased 16 vehicles through the GM Employee Vehicle Purchase Program from 2004 through April 2007. The sales resulted in GM losing $100,000 in profits, the lawsuit claims.
"General Motors has declared these sales fraudulent and has requested the discount be paid," the Detroit automaker says in the lawsuit. "Defendant has failed and refused to repay the discount despite repeated attempts requesting that he do so."
Puchalski's attorney, Robert Sogge, said that six of the vehicles listed by GM were properly purchased by family members, and Puchalski knew nothing about the other 10, all of which were bought at Don Gooley Cadillac on Nine Mile Road in St. Clair Shores.
"The bottom line is they're picking on Steve, they're singling him out," Sogge said.
Puchalski said he believes someone - possibly a salesperson - obtained his employee number and used it without his knowledge.
The Don Gooley general manager could not be reached for comment Friday.
Sogge said he will file a motion to include the Don Gooley dealership as a third party in the lawsuit.
Puchalski said he left GM in 2007 on his own.
GM says the lawsuit is part of a widespread effort to crack down on those who violated program rules that limit the sales to employee's spouse, children, grandchildren, parents, stepparents, grandparents, siblings, stepchildren, step grandchildren, various in-laws, and "same-sex domestic partner."
GM spokeswoman Geri Lama said in an e-mail that the company last year began sending letters to some employees asking them to prove that family members and relatives bought vehicles.
"Improved database technology over the past year has allowed GM to better identify abusers of the system," Lama says. "We won't talk about specific numbers, but obviously the recoveries could be substantial."
David Cole, chairman of the Center for Automotive Research in Ann Arbor, said he has heard about the enforcement effort and believes it is part of automakers reducing all discounts, such as rebates, zero-percent financing and fleet sales.
"They're trying to cut back on incentives in all forms and trying to increase profitability," he said. "The old mentality, 'Get the metal moving,' doesn't have any value if you're losing money. The objective is to be more disciplined. A whole new world is emerging."
Cole said GM isn't alone in the effort as Ford Motor and Chrysler Corp. also are reducing incentives to improve profitability. It also comes at a time the automakers are reducing production of the highly profitable pickup trucks and SUVs.
Sogge pointed out that GM in past years has encouraged the discount program. In fact, GM for a several-month period in 2005 extended the family program to everyone.
Published articles - including one GM endorsed through PR Newswire - say that GM expanded the program. Ford that year matched the program, according to reports.
"I don't see how GM is complaining about selling vehicle," said Sogge, who contends the auto dealerships, not the corporation, suffer the most loss from the discounted sales.
Lama would not reveal how many cases have been filed as part of the effort, but she said most cases have been filed in the tri-county area. She pointed out abusers are a tiny minority, less than 1 percent, of those eligible.
She said the discount program has been in its current form since 1999. About 350,000 to 450,000 vehicles per year have been purchased, she said. About 860,000 employees of GM and GM-affiliated companies are eligible, including those at Delphi and Hughes.
GM says in the lawsuit that it sent two letters to offenders warning them they have been flagged as a potential abuser. A May 8 letter from the law firm Hardy, Lewis & Page, representing GM, to Puchalski warns him to pay $100,140.29 by Monday, June 9, or face a lawsuit.
According to GM, 11 of the vehicles were purchased at Don Gooley and five at other dealerships. The average discount was $6,259, based on GM records provided in the lawsuit.
The vehicles ranged at the high end from a vehicle listed at $65,460 purchased at Don Gooley for $58,200 for a "sibling" in March 2006, to a $21,975 vehicle purchased at Hamilton Chevrolet for $19,594 for a "parent" in December 2004, according to the records.
The biggest discount was about $16,000 on a $56,500 vehicle bought at Somerset Pontiac-GMC Truck in January 2006 for "self."
Rogge said only one of the six vehicles purchased legitimately was bought at Don Gooley and the rest of legitimate vehicles were bought at Hamilton, Somerset, Jim Causley (two purchases), and Ed Rinke Chevrolet.
GM in the lawsuit accuses Puchalski of fraud and misrepresentation, conversion and breach of contract.