TokyoKiller
06-11-2010, 08:08 PM
A Mazda dealership,which was quickly terminated by the manufacturer after negative publicity about a transaction where a car was sold at $25,000 above value, has reopened under new ownership.
Brampton Auto Mall Inc., which already owns nine dealerships, confirmed Friday it has bought the land and buildings of Mazda of Orangeville from previous owner Sunny Baines; reached a franchise agreement with the automaker and reopened as Motion Mazda.
Glen Alizadeh, head of the Brampton dealership group, said there is some skepticism and concern among consumers about the reopening but they are generally happy with the change.
“We’re starting from scratch,” said Alizadeh, who would not disclose financial terms of the deal. “It’s an exciting challenge.”
Alizadeh said he retained eight of the previous dealership’s 26 employees and hired new staff from other stores in his network.
Mazda Canada pulled Baines’ franchise agreement last month after the Star revealed two senior sales employees sold a 2010 Mazda 6 sedan to Madeline Leonard of Orangeville for about $66,000 including taxes and a trade-in car when she should have paid less than $41,000.
The automaker said it ended the franchise with Mazda of Orangeville because it breached the company’s business standards under a sales and service agreement in the transaction and other incidents.
The Ontario Motor Vehicle Industry Council, which regulates auto dealers, charged the dealership and the two employees with “engaging in unfair practice by making an unconscionable representation, “ contrary to the Consumer Protection Act.
The dealership faces a maximum fine of $250,000 and the two employees could receive $100,000 fines plus jail time of up two years if they are found guilty. They could also lose their provincial registrations to sell vehicles.
In investigating the deal, the regulator found the dealership charged the woman three times the value of extra items and saddled her with an eight year loan. The woman also should not have qualified for the loan because she is unemployed and living on a disability pension.
Furthermore, the dealership slapped several thousand dollars on the manufacturer’s suggested retail price on the car, which wasn’t new.
In the end, Baines and Mazda Canada gave Leonard the car without further cost or obligation.
Source: TheStar (http://www.thestar.com/business/article/822511--orangeville-mazda-dealership-reopens)
Brampton Auto Mall Inc., which already owns nine dealerships, confirmed Friday it has bought the land and buildings of Mazda of Orangeville from previous owner Sunny Baines; reached a franchise agreement with the automaker and reopened as Motion Mazda.
Glen Alizadeh, head of the Brampton dealership group, said there is some skepticism and concern among consumers about the reopening but they are generally happy with the change.
“We’re starting from scratch,” said Alizadeh, who would not disclose financial terms of the deal. “It’s an exciting challenge.”
Alizadeh said he retained eight of the previous dealership’s 26 employees and hired new staff from other stores in his network.
Mazda Canada pulled Baines’ franchise agreement last month after the Star revealed two senior sales employees sold a 2010 Mazda 6 sedan to Madeline Leonard of Orangeville for about $66,000 including taxes and a trade-in car when she should have paid less than $41,000.
The automaker said it ended the franchise with Mazda of Orangeville because it breached the company’s business standards under a sales and service agreement in the transaction and other incidents.
The Ontario Motor Vehicle Industry Council, which regulates auto dealers, charged the dealership and the two employees with “engaging in unfair practice by making an unconscionable representation, “ contrary to the Consumer Protection Act.
The dealership faces a maximum fine of $250,000 and the two employees could receive $100,000 fines plus jail time of up two years if they are found guilty. They could also lose their provincial registrations to sell vehicles.
In investigating the deal, the regulator found the dealership charged the woman three times the value of extra items and saddled her with an eight year loan. The woman also should not have qualified for the loan because she is unemployed and living on a disability pension.
Furthermore, the dealership slapped several thousand dollars on the manufacturer’s suggested retail price on the car, which wasn’t new.
In the end, Baines and Mazda Canada gave Leonard the car without further cost or obligation.
Source: TheStar (http://www.thestar.com/business/article/822511--orangeville-mazda-dealership-reopens)