Sonic Automotive Inc., the nation's third-largest dealership group, is ending its relationship with TrueCar at the end of this month, after the car shopping service sued Sonic in federal court for trademark infringement.
TrueCar filed the lawsuit in August in federal court in California, contending Sonic is committing trademark infringement by using the term "True Price" for a new pricing system. The lawsuit was served in December, and Sonic filed its response on Jan. 10.
Sonic President Scott Smith told Automotive News last week that the retailer would stop using TrueCar when its contract obligations run out at the end of January. About 20 of Sonic's 105 stores currently use the service, he said.
"I'm just not going to do business with somebody who's going to sue me," Smith said.