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.
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.
There's a bit more to this story, as apparently, the new location isn't really new at all. A previous Nissan dealership allegedly existed – and failed – at the same place, something which Central Avenue Nissan points out to Automotive News. There's also the issue of supply, wherein the dealer complains that Nissan is struggling to keep its existing dealership network stocked with vehicles, never mind sharing that supply with a new location just a few miles away.
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Motor1.com contacted Nissan to confirm the lawsuit and whether a new dealership in White Plains has opened. A website for Nissan of White Plains is active, but it shows an incorrect telephone number and no vehicle inventory. We will update this article if new information is received.
It seems relationships between automakers and some dealerships are especially strained these days. Recently, both Ford and General Motors sent messages to dealers warning about excessive markups on new vehicles or altering terms for reservations. In each case, potential consequences could include dealerships losing an allocation of vehicles.
With supply chain disruptions and semiconductor shortages continuing into 2022, more production slowdowns are expected at most automakers for the foreseeable future. Some analysts say it could be 2023 before things settle back to normal.
