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Factory Deficiency Letters

PROTECT YOUR DEALERSHIP — RESPONDING TO FACTORY DEFICIENCY LETTERS

The Law Firm of Bellavia Blatt will provide you with experienced automotive legal advice to help your dealership understand, address and successfully navigate the process of responding to factory deficiency letters. A deficiency letter should never be ignored.

  • What is a factory deficiency letter and what does it mean for the dealership?
  • Are you in danger of breaching the Dealer Agreement?
  • Are there valid grounds to terminate the dealership?
  • How do we respond timely and appropriately to preserve your rights?


Your franchise is a valuable asset that must be protected. Your failure to promptly address a deficiency letter jeopardizes the franchise. At Bellavia Blatt, we serve as your “front line” defense against any factory notice that your dealership may receive. Our attorneys will:

  • Timely respond to any alleged deficiency with evidence and market data favorable to your dealership.
  • Be aggressive with the factory (so that you do not have to, avoiding an uncomfortable working relationship between the dealership and its reps).
  • Draft response letters on dealership letterhead or on our firm’s letterhead, as you prefer
  • Commence a legal proceeding or administrative hearing, if necessary.
  • Advise you throughout the entire process.

Bellavia Blatt Can Provide the Legal Advice Needed to Handle Dealer Deficiency Letters

Bellavia Blatt will provide you with experienced automotive legal advice to help your dealership understand, address, and successfully navigate the process of responding to factory deficiency letters. 

Whether you receive a “Dealership Performance Assistance” letter, a “Cautionary” letter or a “Notice of Default and Opportunity to Cure,” such OEM correspondence should never be ignored. 

These letters often become the pre-cursor to dealership termination and can be used by a vehicle manufacturer to prevent a proposed change in the dealer-principal or dealer-operator. Such letters often cite a dealer’s failure to hit sales performance goals or customer service targets, using performance terms like MSR, CSI or RSI to describe various sales and service metrics imposed upon the dealership. Such metrics may hold a dealership to an unreasonable standard that cannot be achieved given the circumstances a dealer faces in his or her local market.

 

Your franchise is a valuable asset that must be protected. 

Failure to promptly address a deficiency letter is a serious matter that can jeopardize your franchise. At Bellavia Blatt, we serve as your “front line” defense against any factory notice your dealership may receive. Citing established case law (like the Beck Chevrolet, Dependable Dodge and Folsom Chevrolet decisions) and your state’s motor vehicle dealership act, we can draft responses to these deficiency letters that hold franchised automotive manufacturers accountable to reasonable performance standards that consider local factors relevant to your auto dealership.

Bellavia Blatt, PC Has Been Representing Automobile Dealers for Over 30 Years

Contact Us
For more information about us, or to set up an initial consultation, at no cost or obligation, call (516) 873-3000 or complete our contact form.

One of our attorneys will contact you promptly.
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