Dealership Add Points and Relocations Continue

BSM attorneys continue to field calls from dealers asking about OEM plans to add and/or relocate dealerships. Despite the current vehicle production limitations, some OEMs continue to study markets for the purpose of adding and/or relocating dealerships. Virtually all states have specific provisions which govern existing dealers’ rights to challenge a proposed new or relocated dealership.

The Firm has recently filed a challenge to a proposed new Ford dealership in Idaho. The Idaho motor vehicle franchise laws allow an existing dealer within a specific mileage radius to challenge the need for the proposed new dealership. Like most states, the Idaho law looks at a balance between the benefit to consumers of the proposed new dealership and the harm to existing same line-make dealers. In the instant case, our Ford client strongly believes that the existing Ford dealers are conveniently located to consumers in the area and can further demonstrate that its sales and customer satisfaction scores are more than adequate. On the other hand, the addition of a new Ford dealer to the market would do great harm to our client’s bottom-line and its ability to continue to provide its customers a state-of-the-art dealership facility with all the amenities, to provide the best training to its staff and quality vehicle service.