It could be a violation of New York State law, and the dealer isn’t happy about a lack of new cars to sell.
In the auto industry, 2021 will be remembered as the year of the global semiconductor shortage that led to a significant drop of new-vehicle production. For a Nissan dealership in the state of New York, a lack of new vehicles combined with another Nissan dealer opening nearby is allegedly leading to legal action against the Japanese automaker.
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Central Avenue Nissan in Yonkers has filed a lawsuit against Nissan, according to a report from Automotive News. The crux of the lawsuit is an alleged breach of contract and violation of state law, which in New York basically states that manufacturers cannot have more than one dealership within a six-mile radius for counties with a population over 100,000. According to the Automotive News report, the lawsuit claims the new Nissan dealership in White Plains is 5.87 miles away.
Source: Automotive News (Subscription Required)
Keyword: Dealer Suing Nissan For Opening A New Store Just Six Miles Away