By: WISCONSIN LAW JOURNAL STAFF//May 24, 2011//
Dealerships
Termination
Where an auto dealer’s sales were subpar and it did not spend what it was required to spend on promotion, the Division of Hearings and Appeals properly held that its termination was not unlawful.
“[T]he Division found that Gentile Nissan significantly lagged in regional sales effectiveness, even though the metric combined the dealer’s sales within and outside its Primary Market Area—‘actual sales are counted regardless of where the vehicle is registered.’ Thus, if Gentile Nissan had done a superb job of promoting and selling Nissan vehicles within its Primary Market Area, as Section 3A of the agreement required, its sales effectiveness would have been high; again, contrary to Ralph Gentile’s contention that it was a bonus that it also got credit for sales outside its Primary Market Area.”
“Further, the Division found, as we have also seen, that Gentile Nissan did not spend what ‘it was required to spend to effectively promote Nissan products.’ Significantly, there are charts in the Record that show Gentile Nissan near the bottom of ‘Nissan Dealers’ Sales in Own [Primary Market Area]/Metro as a Percent of North Central Region Average North Central Region … – 2006’ (uppercasing omitted) and ‘Nissan Dealers’ Sales in Own [Primary Market Area]/Metro as a Percent of North Central Region [] Average State of Wisconsin – 2006’ (uppercasing omitted). Additionally, there is a chart in the Record that shows ‘Gentile Nissan Sales in Racine [Primary Market Area] as a Percent of Competitive Registrations vs Wisconsin Average’ (uppercasing omitted) for the years 2004 through June of 2007 as being barely one-half of, or less than, the average of competitive registrations.” Affirmed.
Publication in the official reports is recommended.
2010AP2524 Ralph Gentile, Inc., v. DHA
Dist. I, Racine County, Mueller, J., Fine, J.
Attorneys: For Appellant: Norman, Paul R., Madison; Baker, Eric A., Madison; For Respondent: Tarver, Sandra L., Madison; Devine, Thomas M., Racine; Hahn, Anthony P., Racine; Wells, Steven J., Minneapolis, MN; Rock, John, Minneapolis, MN