After facing accusations of selling used vehicles as new, LaFontaine Chevrolet Buick GMC of St. Clair has had its suspension lifted by the Michigan Department of State (MDOS), allowing the dealership to swiftly resume normal operations. The initial suspension was a response to violations uncovered during a compliance inspection in September 2024, including the reselling of loaner vehicles registered under the dealership's name as "new." According to WWMT, the MDOS lifted the suspension just a day after its imposition.
The dealership, represented by corporate communications spokesperson Max Muncey, asserted that the issue at its root was "purely administrative in nature," noting that the quick resolution points to the suspension being a performance more driven by headlines than a substantial compliance issue. "Importantly, there was no imminent threat to public safety, no systemic "scheme," and absolutely no guest impact whatsoever," Muncey told FOX 2 Detroit.
The backstory of the suspension reveals MDOS's claim that more than two dozen instances were identified in which LaFontaine continued to misrepresent used vehicles as new, despite undergoing an Alternative Penalty Agreement, which included a financial penalty and an 18-month probation period after a teleconference and training session addressing the initial violations. Michigan Department of State reiterated claims that such actions by the dealership created "an imminent threat to the health, safety or welfare of the public," necessitating the emergency action that originally led to the suspension.
Despite these claims, LaFontaine stands by its assertion that confusion between automaker program requirements and Michigan’s regulatory statutes led to the violations, clarifying that vehicles that were sold to customers as titled used cars did qualify for new-vehicle benefits, although Michigan law does not recognize such vehicles as new. Addressing accusations, the dealership maintained that the resolution bolstered its stance that the allegations of fraudulent acts related more to an administrative error than an intent to deceive. "We continue to operate in full partnership with both our automaker and lender partners," Muncey emphasized in his comments to FOX 2 Detroit.
