In a development that has left absolutely no one in the industry clutching their pearls except one wide-eyed auto reporter, a GMC dealership on Long Island is suing General Motors for $15 million. Sun GMC in Wantagh says the big bad manufacturer has been “wrongfully starving” it of inventory for years, making it impossible to hit sales targets and threatening the store’s very existence. Gasp! Clutch the fainting couch, everyone. This is apparently brand-new information.
The June 3 federal lawsuit paints a picture of shocking inequity: too few trucks, too few SUVs, and certainly not enough of the high-margin, high-demand vehicles that actually move metal. According to the complaint, if GM keeps this up, Sun GMC might — horror of horrors — have to close. General Motors, in classic form, declined to comment because “active litigation.” How convenient.
Look, we all love a good David-vs-Goliath story, but let’s be real for a second. Every dealer principal with more than two brain cells has known for decades that allocation is how the factory keeps the leash tight. Want a healthy supply of those shiny new Yukons and Sierras that actually make money? Better hit your numbers, push the warranties, and maybe throw in a few more service contracts while you’re at it. Craving a few extra hot tickets like the latest Raptor equivalent? Well, funny how those “mid escapes” (you know, the boring bread-and-butter models) suddenly become very important to your allocation score. Play ball, or watch your lot stay empty. It’s not a bug; it’s the business model.
Yet here we are, with the auto news desk treating this lawsuit like a bombshell revelation instead of Tuesday. “Long-running inequitable allocation,” they call it, as if manufacturers haven’t been accused of this since the Eisenhower administration. The reporter’s breathless tone suggests this is some fresh scandal, not the same old song dealers have been humming while staring at half-empty lots and praying for more popular configurations.
GM will almost certainly settle or drag this out until Sun either caves or finds religion about selling whatever they do get. The rest of the dealer world will shrug, pour another coffee, and keep playing the allocation game because that’s how the ecosystem works. Factories hold the keys to the kingdom; dealers hold the real estate and the customer relationships. It’s a beautiful, dysfunctional dance that’s been going on forever.
So bravo to Sun GMC for taking the nuclear option and filing suit. But to the shocked reporter breathlessly covering this “scandal”? Buddy, the entire industry just rolled its eyes in unison. Welcome to the party. We’ve been here for years.