Welcome to the Daily 5 report for Wednesday, Nov. 5.
On its face, it looks like the Michigan Department of State caught a LaFontaine Automotive Group dealership in St. Clair County for "several violations" of the state's vehicle code, including selling used vehicles as new, as our C.J. Moore reported in this story on Tuesday.
But unlike other dealerships that simply settle these types of cases without comment, LaFontaine is pushing back, claiming Michigan's vehicle titling law is "outdated" compared with those of other states.
"Under current manufacturer and lender definitions, vehicles utilized in manufacturer-approved rental or service loaner programs fully qualify as new vehicles," LaFontaine Automotive said in a statement Monday. "In nearly every other state, modernized statutes reflect this reality and allow these vehicles to be titled and sold as new. However, Michigan's outdated titling laws still require such vehicles to be classified as used, even though they meet all qualifications for new vehicle incentives and warranties.
"As a result, these vehicles are sold to customers as titled used cars — despite being eligible for new-vehicle benefits — a regulatory inconsistency unique to Michigan."
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LaFontaine Automotive also asked the state to collaborate with automakers and dealers to "modernize and align state regulations with current industry standards."
As for the ongoing case, the automotive group blamed the situation on a paperwork error and said it was working with state officials to review its processes and documentation.
It seems odd that Michigan — with its legacy of being the nation's automotive hub — would be so far behind in automotive retail regulations. If this is indeed the case, then it would seem to be a no-brainer for automakers, dealers and the Legislature to support updated laws.
No doubt there will need to be a public dialogue about these regulations. LaFontaine Automotive put the issue in play, so it shouldn't be shy about sticking up for itself and others.
Meanwhile, the Nexperia chip crisis seems to be lingering. China has said it will allow the resumption of some chip exports from Nexperia's local operations. But on Nov. 4, China's commerce ministry accused the Netherlands of not working with Beijing to resolve the dispute and warned of further supply chain disruptions, our Yang Jian reports today.
That's all for now. Enjoy the rest of your day. If you want to view this story on your browser click here.
— Philip Nussel, online editor
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