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Factory 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.

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