In December, Automotive News reported that Volkswagen, Toyota, Subaru and Audi were troubled by GPB’s ouster of Rosenberg as Prime’s CEO and as dealer principal of most Prime dealerships without notice or approval. Some automakers said contract breaches allegedly made by GPB were grounds for franchise termination.
Rosenberg’s lawyers argue that pending automaker terminations, likely divestments of the Toyota stores, plus economic fallout from the coronavirus pandemic jeopardize Prime’s business.
“Absent court intervention, Toyota’s divestment both poses a grave existential threat to the business and very likely ensures that plaintiffs will never be able to recover the $24-plus million,” the May 8 filing said.
But GPB and Prime argue that the retailer is financially strong.
Sterling said Prime’s business has substantially grown since Rosenberg was fired. Used-vehicle sales volume rose 15 percent, parts-and-service gross profit increased 10 percent and overall net profits soared during…
