In its lawsuit, Central Avenue Nissan raises a more topical sore point between the automaker and its retailers.
Nissan Motor Co., like its industry peers, has suffered from the global semiconductor shortage that has disrupted assembly lines. The automaker pulled about 130,000 vehicles from North American production in 2021 because of chip-related shortages, according to AutoForecast Solutions data.
In its lawsuit, Central Avenue Nissan said inventory is so low, it is often selling vehicles off the lot the day they arrive.
As of Feb. 1, Central Avenue Nissan had a 23-day supply of new-vehicle inventory. “Rogue inventory, our bread-and-butter SUV, is at a four-day supply,” Rourke said.
The newly sanctioned competition, the suit argued, would add to Nissan’s inventory shortage and worsen the impact on Central Avenue.
“The last thing Nissan needs right now is another dealership without sufficient inventory to meet customer demand,” the suit alleged.
Manufacturers typically divert vehicle allocation to new stores to help the dealer recover startup costs.
“With production shortages leaving dealers struggling to meet customer demand,” attorney Sox said, “the thought that a manufacturer would attempt to justify the addition of another dealer location is absurd.”