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Showing posts with label Chevrolet. Show all posts
Showing posts with label Chevrolet. Show all posts

Wednesday, 23 July 2014

CNPA claim against Chevrolet due in court in Paris on 26 September

The tribunal de commerce, Paris, will hear oral argument on 26 September in the claim brought by the CNPA as a result of the termination of Chevrolet's dealer agreements. The manufacturer has decided to resist the claim and demand indemnities from CNPA.
The delay is accounted for by the need to put together a tribunal of three judges and a rapporteur for the case, rather than having it heard by only one judge. CNPA considered it important not to have one judge only.

As we previously reported, CNPA base their claim on:
  • The brutality of the announcement of the withdrawal of the brand, reported in the media without any prior information to professionals and no notice period to allow them time to prepare for this event with respect to their customers.
  • Disloyalty Chevrolet who knowingly concealed its network for several months the decision of General Motors.
  • Non-compliance with the contractual notice period of two years, since the NFPC can prove that Chevrolet no longer fulfills many of its contractual obligations with respect to its network.
The hearing which took place on 30 May has allowed this procedure to enter a new stage but also for the CNPA to obtain the reaction of Chevrolet. Of course, the brand responds point by point to those complaints. But we also learn that compensation would be required to compensate the NFPC Chevrolet of "denigrating campaign by the trade union organization" and would also bring to an earlier halt sales in the franchise.

For the CNPA, the period of nearly four months for argument promotes a more balanced verdict (for 3 judges will have to decide instead of one), but it can also turn against him. "This late date may favor Chevrolet intimidating practices vis-à-vis dealers who still refuse to settle for decreasing financial protocol proposed by the brand," says the NFPC.

In order to avoid lengthy procedures, nearly 70% of the network has already signed an agreement with the brand. "Nobody has an interest in feeding trials with chronic issues that are crucial for distributors. In the interest of the profession, we must find solutions for everyone, "says Jean-Pierre Rinaudo, head of Vulcan group. In particular the amount of compensation has reportedly been revised upwards in many cases to facilitate the signing of agreements.
(Largely translated from an article in L'Argus, 5 June 2014 (http://www.largus.fr/actualite-automobile/affaire-chevrolet-le-constructeur-se-defend-4227379.html) - further material to be added in due course). Additional coverage available at http://news.autoplus.fr/news/1482925/Justice-Tribunal-France-Chevrolet-Concessionnaires, http://www.autoactu.com/chevrolet-contre-le-cnpa---les-plaidoiries-fixees-a-fin-septembre.shtml (subscription required), http://www.autoactu.com/chevrolet-contre-le-cnpa---les-plaidoiries-fixees-a-fin-septembre.shtml.

Friday, 13 June 2014

France: CNPA takes Chevrolet to court

The Conseil National des Professions de l'Automobile states on its website (and the story is also in L'Argus) that it has responded to the 'brutal' termination of Chevrolet dealers' contracts by instituting proceedings before the Tribunal de Commerce de Paris (having originally sued in the Tribunal de Grande Instance de Pontoise but found that it would take too long to come to court). A hearing took place on 2 May, and a second hearing was fixed for 30 May, but there's no news that I can find about that.

The grounds for the complaint (translated from the French using Google Translate, with a little editing thereafter) are:
  • The brutality of the announcement of the withdrawal.
- The last contract was entered into in June 2013. This is obviously accompanied by investment requirements, a few weeks before the announcement of the withdrawal.
- Contractual loyalty would demand that the network be informed earlier (and at least before the press)!
- This is especially true since the registrations were continuously growing in France. Nobody expected this to happen!
  • Chevrolet's disloyalty.
The CNPA will provide the Tribunal with evidence that GM's decision is the outcome of a long reflection, intended to favour its other brand OPEL.
  • The notice was mortgaged before its notification [or might we say in English that it was a fait accompli?].
- Advertising campaigns about destocking until the exhaustion of stocks showed it to be true.
- Moreover, the delivery time for customers is at least 5 months (and the price of vehicles has increased, officially "among others due to the increase in VAT").
  • Breach of contract by Chevrolet, comprising:
- Lack of stock.
- The removal of demonstration vehicles.
- The removal of the budget estimate tool.
- The reduction and disappearance of the communication plan.
- The elimination of sales targets and action plans.
Another case to watch.