Polestar’s forthcoming withdrawal from the U.S. market is creating quite a bit of disappointment among owners and enthusiasts alike. But the biggest losers in this developing story are the 32 U.S. dealers, many of whom are understandably upset about the destruction of their entire business plan. Now, a Polestar dealer in New Jersey is taking the Swedish automaker to court seeking $25 million, according to a report by Automotive News. Prestige Imports filed a lawsuit against Polestar in Bergen County Superior Court on August 12, seeking $25 million in damages and claiming that the automaker violated New Jersey’s Franchise Practices Act. Under the act, Prestige Imports is reportedly entitled to payment of the franchise's fair market value, plus five years of continued parts and warranty support. The dealer group, which operates Prestige Polestar in East Hanover and Polestar Short Hills, claims the automaker planned its U.S. exit for two years and “maneuvered the [government] into a ban.” Prestige Imports declined to comment when reached by Automotive News. Representatives for Polestar declined to comment on the case, but said that their “primary focus remains on serving our customers and ensuring they continue to receive the support and service they expect from us.” The Swedish-born, Chinese-owned automaker was formally banned from selling vehicles in the U.S. after the 2027 model year under the Connected Vehicle Rule, which prohibits vehicles that use Chinese and Russian technology. The ban was announced in June, and the automaker revealed that it did not plan to appeal the Department of Commerce decision in July. Shortly after the automaker declined to appeal the decision, Prestige Imports allegedly received a formal “force majeure” letter, which explained that the issue was outside of Polestar’s control. The dealer group interpreted the letter as a constructive termination of its franchise, and claimed
Polestar Dealer Sues Carmaker for $25 Million, Claims Federal Ban Used As Way to Leave US
Read the original article
roadandtrack.com →