BSM Files Class Action Against General Motors 

Along with Bondurant, Mixson & Elmore, LLP, and Harris Lowry Manton LLP, BSM has been retained by Ginn Motor Company to file a class action lawsuit against General Motors.  The lawsuit, filed in the Federal Court for the Northern District of Georgia, alleges that GM has failed to properly reimburse dealers for warranty work performed under GM’s parts exchange program.  Under the parts exchange program, GM requires that dealers submit EV batteries, infotainment systems and other high value components removed from a customer’s vehicle as part of a warranty repair to a third-party vendor which, in turn, provides the dealer with a replacement part.  The dealership is paid a fixed fee for installing the replacement part. 

In a number of states, including Georgia, a manufacturer is required to reimburse dealers the equivalent of their approved parts markup percentage based upon the list price of the component being replaced under the manufacturer’s warranty.  The fee paid to dealers in place of the parts markup percentage falls significantly short of the reimbursement amount required under state law. 

In response to the class action lawsuit, GM sought to have the lawsuit dismissed by the Court.  Instead, the Court denied GM’s motion to dismiss and found that Ginn Motor Company had made sufficient legal claims against GM for failing to properly reimburse dealers for warranty work performed under the exchange program.  BSM and its co-counsel are proceeding with obtaining documents and deposition testimony from GM to prove the extent of the amounts owed to dealers for their parts markup on exchange parts used in warranty repairs.