November 21, 2023
By: Thomas S. Vangel, James F. Radke, and William A. Morgan
Litigation partners Tom Vangel and Jamie Radke and Trusts & Estates counsel Bill Morgan recently co-authored an article for Massachusetts Auto Dealer, the official publication of the Massachusetts State Automobile Association, Inc.
The first part of the article emphasizes the importance of having a comprehensive estate and/or succession plan for auto dealership owners. It outlines the unique challenges dealers face and ways to address them, including utilizing annual gift exclusions, establishing trusts and arranging buy-sell agreements.
The second half of the article discusses the New York and Illinois auto dealers challenging Ford's Model e Electric Vehicle Program. The Program, which is currently being implemented nationally, requires dealers to make significant financial investments of between $500,000 and $1.2 million in charging stations and other infrastructure or be prevented from selling or servicing Ford and Lincoln-branded electric vehicles until at least 2025. In the two legal challenges to Ford's Model e Program outlined in the article, the NY Court agreed with the dealers and stayed the Program until a final judgment is issued, and the Illinois Motor Vehicle Review Board found that Ford violated the Illinois Motor Vehicle Franchise Act, a major victory for dealers.
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