Dealers in France Sue GM Over Plan to Drop Chevrolet

A group of Chevrolet dealers in France is demanding more compensation following General Motors Co.'s decision to withdraw the brand in Europe at the end of 2015, Reuters reports.

GM relaunched Chevrolet in Europe in 2005 and developed a network of some 1,900 dealerships in the region to handle the brand. But sales have been disappointing. Last year European demand for Chevys dropped 18% to 138,500 units, according to industry group ACEA. France's CCFA auto association says the brand's sales in France fell 13% to 21,500 units in 2013.

GM has begun negotiations to end its contracts with its European Chevy dealers. But CNPA a group that represents dealers, repair shops and service providers in the country says it is filing a lawsuit today on behalf of French dealers who have rejected GM's offer.

The lawsuit claims GM's compensation isn't enough to cover their investment to build GM-specified showrooms and compensate them for lost value of their business and inventories of unsold cars. GM tells Reuters it is negotiating with Chevy dealers on a case-by-case basis.