GMC Dealer Sues GM for $15 Million After Being Starved of Inventory, Forced to Buy from Rivals

A GMC dealership in Long Island, New York, has filed a $15 million lawsuit against General Motors, accusing the automaker of deliberately starving it of new vehicle allocations to force it into buying inventory from competitors at inflated costs. Sun GMC, which claims to have sold 99% of its allocated vehicles in recent years, alleges that GM’s allocation strategy has been “discriminatory and unfair” since 2018, systematically reducing its supply from 1,200 vehicles in 2017 to just 501 in 2025. The dealership received 380 vehicles in 2023, 426 in 2024, and 501 in 2025, far below the 900-vehicle threshold needed to achieve a “satisfactory” rating on GM’s Retail Sales Index. In 2024, Sun GMC sold 420 of its 426 allocated vehicles, highlighting its sales efficiency despite the crippling shortage. GM allegedly instructed the dealer to source additional inventory from overstocked Buick and GMC dealerships, adding roughly $2,000 in extra costs per vehicle—a financial burden that many dealers cannot absorb without eroding profits. The lawsuit, filed under the Automobile Dealers Day in Court Act, alleges breach of contract, breach of the implied covenant of good faith and fair dealing, and violation of New York dealer law. Sun GMC is seeking $15 million in compensatory damages, plus punitive damages, while its showroom has been forced to display used cars to mask the lack of new inventory. GM has not responded to the lawsuit and declined to comment on active litigation.