Mitsubishi Faces Lawsuit from Kansas City Dealership
A recent lawsuit filed by Oakes Auto, a Mitsubishi dealership in Kansas City, Kansas, accuses Mitsubishi Motors of North America of mistreating its dealers. The lawsuit, totaling millions of dollars, alleges that Mitsubishi made false promises and failed to provide enough vehicles to the dealership.
Allegations in the Lawsuit
- Oakes Auto claims that Mitsubishi forced it to buy unreasonable advertising displays to receive vehicle allocations.
- The dealership had a deal to sell 64 vehicles to an Enterprise affiliate for rental fleets, which Mitsubishi axed.
- Mitsubishi sabotaged a negotiated sale of the dealership to a proposed purchaser.
Dealer’s Response
Oakes Auto sold 121 new Mitsubishi vehicles in 2021, exceeding the brand’s minimum sales target. Despite this, Mitsubishi terminated its contract with the dealership in June 2023. Oakes Auto has expressed its intention to no longer do business with Mitsubishi due to what it perceives as bad faith actions by the carmaker.
Legal Action and Compensation
The dealership is seeking over $2.4 million for breach of fiduciary duty and violation of the Automobile Dealers Day in Court Act. Additionally, they are pursuing roughly $3.5 million for blocked sales and nearly $219,000 for Mitsubishi’s failure to meet post-termination financial obligations.
Mitsubishi’s Response
Mitsubishi has filed a motion in federal court to dismiss three of the six claims in the lawsuit. The legal battle between Oakes Auto and Mitsubishi is ongoing as both parties seek resolution.
