Car dealerships take legal action against Toyota Ireland

Fifteen Irish car dealerships and garages have initiated legal proceedings against Toyota Ireland alleging anti-competitive behaviour by the motor giant.

It is understood the garages are also preparing a detailed complaint that will be lodged with the Competition Authority next week alleging breaches of Irish and European law.

In a plenary summons filed on September 5th, the 15 garages claimToyota is involved in a “concerted practice” to favour its dealerships and to close off the repair and maintenance market to them.

They are seeking an injunction to prevent Toyota Ireland from refusing to allow them to service cars under the Toyota free service promotion, the imposition of “unfair and discriminatory credit terms, and the imposition of “wholly disproportionate” criteria for admission to the authorised repairer network.

The garages have been appointed by Toyota as authorised repairers but do not sell the Japanese manufacturer’s vehicles. They claim Toyota dealerships are being given preferential treatment when it comes to the repair and servicing.

They claim that Toyota Ireland has disrupted their businesses by cutting off spare parts supply and removing them from its list of repairers.

They argue this has damaged customer relations and impacted on consumer choice.

The garages say this flows from a decision by Toyota some time ago that requires dealerships to only sell the Japanese company’s vehicle. The garages involved include five in Dublin: Cranley Cars Ltd on the Naas Road; Linders of Chapelizod; McCoy Motors Ltd in Lucan; Murphy & Gunn Ltd in Rathgar; and White & Delahunty Motors Ltd, Sallynoggin.

Four Fitzpatrick’s garages in Carlow, Kildare, Naas and Tullamore are included, along with three Kearys companies in Cork. The other litigants are Cavanaghs of Charleville Ltd in Cork; Hogan Motors Ennis; and Motorpark in Galway.

In a statement issued to The Irish Times yesterday, Toyota "strongly" refuted the allegations being made against the company.

“Toyota Ireland is satisfied, and is advised, that it has at all times complied with competition law and the terms of its agreement with these authorised repairers.

“It intends to vigorously defend its position against what it regards as an unmeritorious claim,” it added.