by A GMC dealership in Long Island, New York, has filed a lawsuit against General Motors, alleging that the automaker is deliberately limiting the supply of new vehicles, pushing the business to the brink of survival.
The essence of the lawsuit and allegations
According to Sun GMC, problems began as early as 2018 when the company faced what it calls “discriminatory and unfair allocation.” A year earlier, GM had supplied the dealer with 1,200 vehicles, but this number later more than halved. In 2023, the dealer received only 380 cars, in 2024 — 426, and in 2025 — 501.
Due to such a small number of allocated vehicles, according to GM’s quarterly reports, the dealership shows poor results in the retail sales index. To achieve a “satisfactory” rating, over 900 cars would need to be sold. Instead, the dealer received only 426 cars, of which 420 were sold.
Demands and damages
Sun GMC is filing a lawsuit for $15 million, claiming that GM “unfairly deprives it of inventory for sale, causing irreparable harm to the business and its business reputation.” Over the past year, the dealer’s inventory has often dropped to 50 vehicles, forcing it to display used cars in the showroom to avoid creating the impression that the business is closing.
GM’s proposal, which is not a solution
“GM executives told me, both verbally and in writing, to seek inventory from overcrowded Buick and GMC dealerships, despite significantly higher costs,” said Pat Cassino, the dealership’s president.
He noted that this route adds approximately $2,000 in additional costs per vehicle, which is an unaffordable margin for most dealers trying to make a profit.
Legal grounds
It is alleged that GM violated the Day in Court Act for automobile dealers, contract terms, the principle of good faith and fair dealing, and the New York State dealer law. In addition to $15 million in compensatory damages, the dealer is also seeking punitive damages.
GM’s reaction and current situation
General Motors has not responded to the lawsuit and stated that it would not comment on active litigation. Currently, Sun GMC is forced to defend its position in court, and its showroom tells the story through the language of used cars.
This case highlights the deep tension between major automakers and their dealer networks. While GM is likely trying to optimize supply chains and focus on the most profitable markets, such a policy could lead to the bankruptcy of small dealers who have been the face of the brand in their regions for decades. If the court rules in favor of Sun GMC, it could set a precedent that forces GM and other automakers to reconsider their vehicle allocation algorithms to avoid mass lawsuits. Conversely, if GM proves it acted within the contract, it will strengthen the position of manufacturers in their pursuit of more centralized control over sales.
