Polestar never appealed the US ban that Volvo cleared, a $25 million dealer suit says
A New Jersey dealer that sells Polestar cars sued the automaker for at least $25 million.
The dealer contends Polestar spent two years setting up its U.S. exit and used a federal ruling as an escape hatch. The claim comes as the brand is winding down sales in the U.S.
What Prestige Imports is claiming
Prestige Imports has a Polestar store at Short Hills, among other locations. It filed the complaint over the brand’s impending exit.
The complaint alleges that Polestar had been preparing for the retreat for years, that it refused the same federal authorization its sister brand received, and that it never challenged the denial when it came.
The dealer contends the departure breaches New Jersey’s Franchise Practices Act. That law generally prohibits a manufacturer from terminating a franchise without both a 60-day notice and “good cause,” which is tied to a dealer’s own failure to perform.
The suit says Polestar delivered neither. Prestige is asking for damages and the fair market value of the franchise, as well as parts and warranty support for five years. Polestar declined to comment on the matter.
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