New York Dealer Sues Stellantis and Maserati North America

The owners of Gold Coast Alfa Romeo and Gold Coast Maserati in Great Neck, New York, have recently initiated legal action against Stellantis and Maserati North America. The lawsuit, lodged on July 23 in Nassau County Supreme Court, alleges that the automakers have obstructed the sale of the dealerships for “illegitimate, pretextual reasons,” including potential retaliation linked to a prior legal dispute.

The previous lawsuit, which is still ongoing, accuses Stellantis and its predecessor, Fiat Chrysler Automobiles (FCA), of engaging in various illegal practices. These include unfair wholesale price discounts, unjust customer satisfaction indices, discriminatory vehicle allocations, and failure to reimburse dealerships for warranty repairs at the agreed retail rate.

In their new lawsuit, Gold Coast claims that Stellantis and Maserati North America have significantly devalued the dealerships through years of “gross mismanagement.” The complaint highlights that despite Gold Coast’s efforts to boost the dealerships’ performance, their value has dropped considerably. Given the brands ‘ underperformance, the lawsuit also underscores the challenges of attracting buyers for Alfa Romeo and Maserati dealerships.

Recent financial reports reveal that Maserati has suffered an adjusted operating loss of €82 million ($90 million) for the first half of the year, with global sales plummeting by over 50% to just 6,500 vehicles. The lawsuit asserts that similar mismanagement issues have led to numerous Alfa Romeo and Maserati dealers across the U.S. surrendering their franchises due to declining profitability.

Gold Coast has reportedly identified a potential buyer, Slanelli LLC, which asserts it possesses the requisite experience and financial resources. However, Stellantis and Maserati allegedly failed to respond to the transfer request within the 60-day window. Subsequently, they rejected it, citing concerns over the proposed management group’s lack of retail dealer experience. Additionally, they questioned the background of a proposed manager, citing a past felony conviction.

The lawsuit suggests that Stellantis and Maserati may deliberately block the transfer to enable another undisclosed party to acquire the dealerships, potentially at no cost to Gold Coast. The suit is seeking unspecified damages under New York’s dealer laws. Representatives from Stellantis and Maserati have declined to comment on the ongoing litigation.

Source: Automotive News