A couple of dealerships in New York are fed up with Ford! Allegedly, the automaker underpaid them for EV batteries. As a result of being shorted by hundreds of thousands of dollars, they have decided to sue. 

New York dealers sue Ford due to underpaying for EV batteries 

Two dealerships in New York are furious at Ford, so they’re taking action. Jericho Turnpike Auto Sales and Patchogue 112 Motors have filed a lawsuit against the automaker. Also, this could snowball into even more lawsuits. 

Allegedly, the Blue Oval undercut them by hundreds of thousands of dollars on reimbursements for EV batteries. The lawsuit claims Jerchair was shorted by about $300,000 and Patchogue by over $615,000. 

Reportedly, Ford dismissed the New York statute that requires automakers to reasonably cover repairs and sever contracts that aren’t less than the price and rate charged by the franchises motor vehicle dealer. 

This relates to services such as non-warranty and/or non-service contract customers. The Blue Oval is obligated to cover the costs of parts plus a 40% markup. Dealers can apply for a 70-200% retail markup. 

According to Ford Authority, Jericho replaced 15 electric vehicle batteries but was only reimbursed $600 for 13 of them and $13,000 for two others. Apparently, it should have gotten $22,000 each. The 112 Motors dealership replaced 28 batteries but only received $600 per unit. 

Leonard Bellavia, founder of the Bellavia Cohen P.C. law firm, is representing the plaintiffs. He claims that Ford isn’t the only OEM ignoring warranty reimbursement laws by paying low flat fees for replacement EV battery packs. 

This is the first of many lawsuits that will be filed over services for electric cars against various OEMs over the next few months.