In the auto industry, 2021 will be remembered as the year the global semiconductor shortage led to a significant decline in new vehicle production. For Nissan dealerships in New York state, the lack of new vehicles combined with the opening of another Nissan dealership nearby is suspected of leading to legal action against the Japanese automaker.
Central Avenue Nissan in Yonkers has filed a lawsuit against Nissan, according to a report from Automotive News. At the heart of the lawsuit is an alleged breach of contract and breach of state law, which in New York essentially states that a manufacturer cannot have more than one dealer within a six-mile radius for counties with a population of over 100,000. according to Automotive News reports, the lawsuit claims a new Nissan dealership in the White Plains is 5.87 miles away.
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There’s a little extra to this story, because apparently, the new location isn’t anything new at all. Nissan dealerships were previously suspected – and failed – in the same premises, something Central Avenue Nissan points out Automotive News. There were also supply issues, with dealers complaining that Nissan was struggling to keep its existing dealer network full of vehicles, let alone sharing that supply with a new location just a few miles away.
Motor1.com contacted Nissan to confirm the lawsuit and whether a new dealership in the White Plains had opened. The Nissan of White Plains website is active, but shows the wrong phone number and no vehicle inventory. We will update this article as new information is received.
It seems that relations between the automaker and some dealers have been very strained lately. Recently, Ford and General Motors sent messages to dealers warning about excessive markups on new vehicles or changing requirements for reservations. In each case, potential consequences could include dealers losing their allocation of vehicles.
With supply chain disruptions and semiconductor shortages continuing into 2022, more production cuts are expected at most automakers for the foreseeable future. Some analysts say it may be 2023 before things return to normal.