Customers suing dealerships and automotive companies is one thing, but a dealership suing an automaker is quite rare.
The reason for the filing is even more unusual because, allegedly, the company in question, General Motors, was not supplying enough vehicles, leading to a drop in earnings.
The dealer has called out GM on several fronts in the lawsuit, highlighting the dealer-company dynamics that often go unheard.
This makes the lawsuit all the more surprising, given that the dealer has reportedly been a loyal GM partner for decades.
Sun GMC’s $15 Million Lawsuit Alleges GM Reduced Supply on Purpose
Sun GMC, Inc., a car dealership from New York, filed a lawsuit against General Motors for $15 million on June 3, alleging that the company has been starving the dealership of inventory on purpose, which has led to low ratings and reduced earnings.
According to a report by Car Dealership Guy, Sun claimed that GM had been doing this for several years to put dealership owner Patrick Cassino out of business. Cassino has been a dealer since 1986 and has owned the New York dealership in question since 1993.
According to court documents, only 380 vehicles were invoiced in 2023. In 2024, Sun sold 420 vehicles. Last year, Sun was assigned a target of selling 1,000 cars, but GM reportedly supplied only around 501 cars. Over the past six months, Sun has received fewer than 20 vehicles per month on average.
GM expected Sun to sell certain models like the Sierras and Yukons, but it never actually supplied them. The situation got so bad that Sun had to put used vehicles on display because the storage lots were empty.
Cassino’s attorney, Leonard Bellavia, said this was being done so that the dealer could eventually submit to any demands the manufacturer made. He said:
“By not providing dealers with sufficient inventory, they effectively beat the dealer into economic submission to do whatever the end game is that the manufacturer wants, whether it’s a relocation, a renovation, a sale.”
Sun’s Retail Sales Index (RSI) was reportedly affected due to reduced inventory levels. The lawsuit went on to add that GM favored dealerships that were near Detroit over other Northeast dealers to reduce the cost of transportation.
Cassino’s Attempts to Resolve the Issue Went in Vain
Cassino tried to resolve the issue for years before eventually filing the lawsuit seeking damages. Bellavia said:
“He loves the business, that’s why he’s so good at it. He just wants to make the best out of this one that’s been his pride and joy for over three decades.”
He added:
“The last thing he wanted to do was bring a lawsuit against GM. He’s been a loyal dealer for over 30 years. This is really just the straw that broke the camel’s back.”
Bellavia also stated that this lawsuit could help other dealers facing similar issues:
“We’re going to discover the secret sauce of the allocation system, which manufacturers like to keep close to the vest. This is going to be beneficial to all dealers who feel they’re being discriminated against as far as allocation is concerned.”
It is clear that with over three decades of being a GM dealer, Cassino does not intend to sell or close the dealership. In fact, Bellavia said that Cassino was using his own resources to stay in business. According to the filing, the plaintiffs are seeking:
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A court order requiring GM to supply inventory in sufficient quantities and with an appropriate mix
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A declaratory judgment striking down GM’s allocation policies as discriminatory and unfair
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Compensatory damages of no less than $15 million