Car dealers sue GM

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A group of 70 General Motors Corp. dealers in Illinois filed a lawsuit today in Cook County Circuit Court against the giant car marketer over its plans to dismantle regional dealer ad groups April 1. Dealers attorney Sam Skinner, co-chairman of Hopkins & Sutter, Chicago, said the dispute is over the 1% added to the suggested retail price of every vehicle and now spent for dealers' regional ads. The dealers claim the money is theirs, not GM's, and they fear the Detroit-based automaker will spend the money advertising in other markets, Mr. Skinner said. Nationwide, GM dealers collect about $500 million for regional advertising annually.

Copyright January 1999, Crain Communications Inc.

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