In a recent development, Stellantis, the multinational automaker, has found itself embroiled in a legal battle with a North Carolina dealer, Randy Marion Chrysler-Dodge-Jeep-Ram in Wilkesboro. The dealer, having terminated its sales and service contract with Stellantis in June, is now seeking the repurchase of 3,841 unsold fleet vehicles, valued at $180 million. However, Stellantis has taken a firm stance against this request, citing deceptive actions on the part of the dealer as grounds for refusing to comply.
The crux of the issue lies in the dealer’s alleged misrepresentation of the status of the vehicles at the time of ordering. Stellantis claims that the dealer falsely claimed that the vehicles were already sold when placing the orders, a violation of the automaker’s rules regarding fleet vehicle purchases. This deceptive practice has led Stellantis to seek legal recourse in order to absolve itself of the obligation to repurchase the unsold vehicles.
The timing of this dispute is particularly significant, given Stellantis‘ current inventory challenges and a recent 48 percent drop in profits during the first half of the year. With the automotive industry facing unprecedented challenges, the prospect of repurchasing nearly 4,000 unsold vehicles poses a significant financial burden for the company. As a result, Stellantis has taken a firm stance against the dealer’s demands, signaling its intent to fight the matter in court.
Under North Carolina state law, automakers are required to repurchase a dealer’s new-vehicle inventory when the two parties part ways. In this case, Randy Marion Chrysler-Dodge-Jeep-Ram in Wilkesboro invoked this provision when terminating its contract with Stellantis. However, Stellantis contends that the dealer’s actions, including ordering fleet vehicles without a specific customer in mind and using fleet numbers belonging to other corporate customers without their knowledge, constitute a breach of the agreement.
Moreover, Stellantis alleges that the dealer engaged in questionable practices, such as ordering vehicles from other dealers and making modifications to fleet vehicles that void the state law’s requirement for repurchase. These actions have further complicated the situation, leading to a legal standoff between the automaker and the dealer.
In light of these developments, the legal battle between Stellantis and the North Carolina dealer underscores the complexities and challenges facing the automotive industry. As both parties prepare to present their cases in court, the outcome of this dispute will have far-reaching implications for the future of their relationship and the broader automotive market. Stay tuned for further updates as this story unfolds.