Dealer Sues GM to Block New Franchise in Boston Market
The owners of Mirak Chevrolet of Arlington, Mass., a suburb of Boston, are suing General Motors to prevent the factory from establishing a new franchise in nearby Waltham, reports Eric Freedman of Automotive News.
Attorneys for Mirak Chevrolet successfully petitioned to halt progress on the new dealership while the case advances. In court filings and correspondence with Mirak’s owners, GM claims a second store is needed to satisfy demand.
Waltham is about six miles from Arlington, less than a 20-minute drive.
“In its June 16 filing moving the case from state to federal court, GM said Mirak Chevrolet’s requested injunction would cost GM ‘substantial sales in a market territory with high potential. GM would not propose the establishment of a new franchise in Waltham if it did not expect, based on an analysis of the area, that GM would gain substantial additional sales,’” Freedman writes.
