DaimlerChrysler is asking a federal court to throw out a lawsuit challenging the new-vehicle surcharges it has threatened to impose on dealers who attempt to file higher claims on warranty parts.
The motion to dismiss comes Dec. 15 before the United States District Court for the District of New Jersey.
The New Jersey Coalition of Automotive Retailers, which is the state dealer association, filed a lawsuit against DaimlerChrysler in July, claiming the company is illegally intimidating dealers. The lawsuit claims the automaker is preventing dealers from exercising their legal right to a higher warranty parts markup.
New Jersey warranty law requires manufacturers to reimburse dealers for warranty parts at the same markup they charge their nonwarranty service customers. In March, the law was amended to make it easier for dealers to calculate their retail parts markup and potentially file higher warranty claims.
In court documents, DaimlerChrysler said it is 'perfectly lawful' to impose surcharges on new vehicles to recover the higher cost of complying with the new warranty law.