Dealer Sues Mitsubishi Over Inventory

LOS ANGELES (AP) -- The owner of four Southern California car dealerships is suing Mitsubishi Motors North America and its credit arm, saying they forced the dealerships to stock more vehicles than they could sell, costing them millions in extra finance charges.

The lawsuits Abbas Ahmadi filed in state court last year and earlier this year involve dealerships in Cerritos, Huntington Beach, Costa Mesa and Victorville, NBC reported. His allegations include breach of contract, unfair business practices and unjust enrichment.

Mitsubishi Motors North America, the U.S. arm of Mitsubishi Motors Corp., said in a statement that the lawsuit's claims are "entirely without merit" and it's "aggressively defending" itself.

Ahmadi alleges that Mitsubishi set a sales goal of 500,000 cars nationwide by 2005 and required dealerships to increase their inventory and infrastructure to meet production numbers, which increased the finance charges dealers paid. Mitsubishi's U.S. sales peaked at 345,111 vehicles in 2002.

Ahmadi's attorney, Bobby Samini, alleges that Mitsubishi's practices cost his client up to $10 million, not including future losses. The lawsuit asks for damages to be determined in a jury trial.

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