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Wednesday, 4 February 2015

Court: Fiat contract termination invalid

Gericht: Fiat-Vertragskündigung unwirksam reports the KFZ-Betrieb website (which evidently does not limit itself to trucks). Google Translate has provided me with this (tidied up a little) and I think I can safely say that its use falls within section 30(2). FIAT had cancelled all 550 dealer agreements and 900 authorised repairer agreements in Germany.

The Regional Court (Landgericht) Frankfurt has declared the termination of all FIAT's dealers' contracts  invalid (AZ: 3-08 O 113/14). ... A board member of the Association had filed a fundamental lawsuit against the dismissals of the Alfa dealer contract and the Fiat, Alfa and Jeep service contracts.
Fiat had terminated nationwide every dealer and service contract in February 2014, after it had come into force on 1 January 2014. Originally, the importer had promised the partners long-term planning security with these contracts. Among other things, this circumstance, the General Court now considered to be relevant that the dismissal was contrary to good faith, according to the association. Especially also because Fiat had insufficient grounds to recite that dismissal is only a few weeks after the introduction of the contracts was necessary due to changed circumstances.
Already in December a different chamber of the LG Frankfurt had declared invalid clauses from the Letter of Intent from Fiat Germany to selected Fiat partner, because traders should therefore continue without any review of new contracts. Therefore, the judgment regarding the dismissals have far-reaching consequences, according to the association.
The intention of Fiat to reduce margins drastically redefine the margins at its discretion in model changes was, just questioned how the envisaged by the importer subject to the changes to the standards, according to the release. Both schemes make the new contracts for the incalculable dealer trade body. They would therefore rejected by the vast majority of its members in any case.

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