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Michigan regulators have suspended the license of LaFontaine Hyundai of Livonia for violating the Michigan Vehicle Code and creating “imminent harm” to the public, the state said in a news release.
The Michigan Department of State said it issued the suspension after state regulators discovered the dealership’s violations during an investigation of the store. The regulators found that the dealership, which is located on Plymouth Road near Wayne Road in Livonia, had been falsifying documents so it could lease used vehicles as new, the state said.
“We can confirm that LaFontaine Hyundai has accepted full responsibility,” department spokesperson Cheri Hardmon told the Free Press Friday morning. “We are still finalizing the paperwork regarding the status of the suspension.”
She did not answer Free Press questions about when the violations occurred or how many vehicles were involved in the violations. It’s also unclear how unusual it is for the state to suspend dealerships’ licenses. The last high-profile suspension was in October 2022 when the Michigan Department of State suspended the license of the Carvana dealership in Novi after finding multiple notices of noncompliance with the state vehicle code. That suspension turned into a monthslong dispute between the state and Carvana, ending with Carvana surrendering its in-state dealer license for three years.
LaFontaine Auto Group owns 39 dealerships across the state and sells a variety of brands, according to its website. Company spokesman Max Muncey issued the following the statement to the Free Press: “LaFontaine Automotive Group deeply regrets to confirm that the State of Michigan has temporarily suspended the dealer license for LaFontaine Hyundai Livonia. This decision stems from the actions of a few rogue employees whose conduct does not reflect our values or the standards we hold ourselves to.”
According to the state regulators, the violations included:
- Committing fraudulent acts in connection with selling vehicles by falsely stating that a customer had not taken delivery of a vehicle in order to lease the vehicle as new to another customer, thereby misrepresenting a used vehicle as new.
- Failing to have a title in immediate possession with the odometer information properly completed.
- Failing to properly issue a temporary registration.
- Failing to properly complete the state’s application for title and registration.
- Failing to make an application for title and registration in the buyer’s name within 21 days of vehicle delivery.
“These violations created an ongoing imminent threat to the public health, safety or welfare of the public, requiring emergency action,” according to the state’s news release this week.
State regulators and the Michigan Automobile Dealers Association issued bulletins reiterating what makes a vehicle “used” under the Michigan Vehicle Code, the state said. As part of the state’s investigation, it said that regulatory staff discovered that the LaFontaine corporate office “suggested submitting false information even after the bulletins were issued, and the dealership then followed this advice to allegedly sell or lease the vehicles as ‘new.’ “
In LaFontaine’s statement, the dealership said it is taking corrective action with the employees involved.
“We want to be clear: we find these actions completely unacceptable. Immediate ramifications have been enforced for those involved, and we are conducting a thorough review of all policies and procedures to ensure such incidents never happen again. The trust and confidence of our valued guests are paramount, and we take this matter with the utmost seriousness. As a family-owned business, we are committed to upholding the reputation we have built across the communities we proudly serve for over 40 years. We do not take this situation lightly. Effective corrective actions are already underway, and we are reinforcing training and oversight across our organization.”
The dealership said it will work closely with regulators to put in place a plan to address the violations.
“It is our goal to remedy this situation swiftly and responsibly while reinforcing our commitment to integrity and exceptional service,” LaFontaine’s statement said. The state said any consumers who have a complaint against LaFontaine Motors of Livonia should call the Office of Investigative Services automotive complaint line at 844-372-8356.
Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.
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