Michigan Suspends Hyundai Dealership’s License “For Imminent Harm To Public” But Reinstates It

It’s not uncommon to hear about shady dealership practices—after all, the auto industry has its share of unsavory characters—but sometimes, just sometimes, they do get caught. One dealer in Michigan lost its license (albeit, as it turns out, briefly) over some rather questionable tactics. Though the suspension was temporary, the laundry list of infractions suggests this wasn’t just a minor slip-up.

According to the Michigan Department of State, LaFontaine Motors allegedly committed fraud by leasing used cars as though they were new. While LaFontaine Auto Group operates 39 dealerships across the northern part of the state, this suspension only affects its Hyundai location at 34715 Plymouth Rd.

“On Dec. 4, the Michigan Department of State (MDOS) suspended the license of LaFontaine Motors of Livonia Inc., also known as LaFontaine Hyundai of Livonia, for imminent harm to public.,” said the agency in a statement.

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The list of infractions found by a MDOS investigation is wide-ranging and significant. It includes falsifying records to certify used vehicles as new on official state applications, misrepresenting vehicles’ statuses in sales transactions, failing to properly issue temporary registrations, omitting or incorrectly handling odometer information on vehicle titles, and delaying title applications for purchasers beyond the legal 21-day period.

Denial, Then Accountability

Initially, LaFontaine’s response was typical corporate speak. A spokesperson for the dealership, Max Muncy, expressed regret and pinned the blame on a handful of “rogue employees.” He provided the following statement to the Detroit Freep:

“LaFontaine Automotive Group deeply regrets to confirm that the State of Michigan has temporarily suspended the dealer license for LaFontaine Hyundai Livonia. This decision stems from the actions of a few rogue employees whose conduct does not reflect our values or the standards we hold ourselves to.”

Interestingly, the state seems to see things differently. “As part of the MDOS investigation, regulatory staff discovered that the LaFontaine corporate office suggested submitting false information even after the bulletins were issued, and the dealership then followed this advice to allegedly sell or lease the vehicles as ‘new’,” says the Department of State.

LaFontaine claims that it’ll fix the issue and has already sent the “rogue employees” packing: “We want to be clear: we find these actions completely unacceptable. Immediate ramifications have been enforced for those involved, and we are conducting a thorough review of all policies and procedures to ensure such incidents never happen again. We do not take this situation lightly. Effective corrective actions are already underway, and we are reinforcing training and oversight across our organization.”

The state wants consumers who suspect fraudulent activity involving LaFontaine Hyundai to report their experiences. Complaints can be submitted via the MDOS Office of Investigative Services’ automotive complaint line at 844-372-8356.

License Restored

Apparently, the suspension was all too brief, as the dealership on Friday evening emailed the Detroit Free Press that the license had been reinstated.

“We can confirm that LaFontaine Hyundai has accepted full responsibility,” department spokesperson Cheri Hardmon told the outlet, although she wouldn’t disclose when the violations occurred or how many vehicles were involved.