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Oct 16, 2024

Warranty reimbursement rate subject of Mitsubishi dealership lawsuit | Automotive News

Long Lewis Mitsubishi called the rejection of its proposed labor rate increase "arbitrary, unconscionable, unreasonable and not in good faith." A Florence, Ala., dealership has filed a lawsuit against

Long Lewis Mitsubishi called the rejection of its proposed labor rate increase "arbitrary, unconscionable, unreasonable and not in good faith."

A Florence, Ala., dealership has filed a lawsuit against Mitsubishi Motors North America, saying the company failed to approve its requested steep hike in its hourly reimbursement rate for warranty work.

Long Lewis Mitsubishi called the rejection of its proposed increase "arbitrary, unconscionable, unreasonable and not in good faith."

In April, according to the complaint, the dealership asked Mitsubishi to boost its hourly labor rate to $260.40 from $177, a figure it said was reasonable and consistent with the prevailing rate received by "similarly situated dealers" in Alabama. There are only four Mitsubishi stores in the state, according to Jeffrey Ingram, a Trussville, Ala., lawyer who represents Long Lewis Mitsubishi.

The complaint said the requested rate is less than what the store charges for nonwarranty repairs.

Mitsubishi "arbitrarily" raised the rate to $183 an hour, according to the suit, which was moved from state to federal court on Oct. 2.

Long Lewis Mitsubishi said it unsuccessfully asked Mitsubishi "multiple times" to reconsider its decision and to disclose how it calculated the $183 rate.

The complaint accuses Mitsubishi of unfair and deceptive trade practices and failing to act in good faith. It seeks retroactive reimbursement at the requested $260.40 rate.

Ingram said his client went to court because Alabama has no dealer board to decide administrative protests.

Jeremy Barnes, Mitsubishi's senior director for communications and events, said the company does not comment on ongoing litigation.

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