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Seller sues Nissan: Not sufficient vehicles for a close-by new retailer

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In its lawsuit, Central Avenue Nissan raises a extra topical sore level between the automaker and its retailers.

Nissan Motor Co., like its business friends, has suffered from the worldwide semiconductor scarcity that has disrupted meeting strains. The automaker pulled about 130,000 automobiles from North American manufacturing in 2021 due to chip-related shortages, in keeping with AutoForecast Options information.

In its lawsuit, Central Avenue Nissan mentioned stock is so low, it’s typically promoting automobiles off the lot the day they arrive.

As of Feb. 1, Central Avenue Nissan had a 23-day provide of new-vehicle stock. “Rogue stock, our bread-and-butter SUV, is at a four-day provide,” Rourke mentioned.

The newly sanctioned competitors, the swimsuit argued, would add to Nissan’s stock scarcity and worsen the affect on Central Avenue.

“The very last thing Nissan wants proper now’s one other dealership with out enough stock to satisfy buyer demand,” the swimsuit alleged.

Producers sometimes divert car allocation to new shops to assist the supplier get better startup prices.

“With manufacturing shortages leaving sellers struggling to satisfy buyer demand,” lawyer Sox mentioned, “the thought {that a} producer would try to justify the addition of one other supplier location is absurd.”

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