State Supreme Court Decision Ankles N.J. Lincoln Dealer Lawsuit

The Supreme Court of New Jersey has ruled against the New Jersey Coalition of Automotive Retailers in a decision that may end a lawsuit NJ CAR leveled against Ford Motor Co. on behalf of 18 Lincoln dealers, reports Eric Freedman of Automotive News.
At issue is the Lincoln Commitment program, which offers a premium ownership experience with a number of perks, many of which are facilitated by the selling dealer. The dealer association’s directors believe Ford’s subsidization strategy was designed to reward dealers with standalone Lincoln showrooms, running afoul of state franchise laws.
In their unanimous decision, justices found NJ CAR lacks standing to bring the lawsuit.
“The initial lawsuit, filed by the association in 2020 in Mercer County Superior Court, argued that those payments ‘result in vehicle price differentials’ prohibited by the franchise law,” Freedman writes. “In a court filing, the dealers association said the payments ‘create bonus differentials on comparably equipped new motor vehicles because not all New Jersey Lincoln dealers receive the same percentage’ of the manufacturer’s suggested retail price as a program payment.”




