DETROIT -- Former Ford dealer Gail Duncan last week sued Ford Motor Co. and Ford Motor Credit Co., alleging they conspired to eliminate Jerome-Duncan Ford as a rival after Ford Motor bought several metro Detroit dealerships.
Ford became owner or part owner of four nearby dealerships in 2004 and 2005, and those dealers "stood little chance to enhance their sales and, consequently, their value, while Jerome-Duncan Ford was still standing," the suit said.
Jerome-Duncan, of Sterling Heights, Mich., filed for Chapter 11 reorganization last June. In January, a bankruptcy court judge approved the sale of the dealership to the Suburban Collection, a dealership group. Under the reorganization plan, money from the suit would be used to pay off creditors.
In an e-mail, Ford Motor Credit said: "The allegations against us are ludicrous." A spokeswoman for Ford Motor said the company had not reviewed specifics of the suit and could not comment on it.