Nissan Sues County's Largest Car Dealer : Business: Auto maker says Nesen Motor Car Co. has failed to pay for $1.2 million in sold vehicles. It also seeks immediate repayment of $4-million loan. - Los Angeles Times
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Nissan Sues County’s Largest Car Dealer : Business: Auto maker says Nesen Motor Car Co. has failed to pay for $1.2 million in sold vehicles. It also seeks immediate repayment of $4-million loan.

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SPECIAL TO THE TIMES

A Japanese car maker filed suit Wednesday against Ventura County’s largest auto dealer, accusing Nesen Motor Car Co. of failing to pay for dozens of luxury sedans sold at its Thousand Oaks Infiniti dealership.

Nissan Motor Acceptance Corp.--the financing arm of the auto maker--also demanded that Nesen return 177 unsold vehicles, and sought the immediate repay ment of a $4-million loan Nesen used to build the dealership.

According to the lawsuit filed in Ventura County Superior Court, Nissan officials conducted an audit Nov. 21 and found 59 new and used vehicles missing from the lot for which the company had not received any payment. The agreement calls for Nesen to pay Nissan only when customers drive their vehicles off the lot.

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Nissan contends that Nesen owes the company $1.2 million for those cars.

Under terms of its contract, Nissan has the ability to foreclose on the lot and repossess the remaining 177 vehicles.

The auto maker loaned Nesen $4 million in 1989 to buy a lot and set up the Infiniti dealership next to its other outlets on Auto Mall Drive. According to the suit, Nesen owes $3.83 million on the note, and the car maker is demanding full payment immediately.

The suit also seeks a temporary restraining order forbidding Nesen from selling the remaining vehicles on the Infiniti lot, which Nissan values at $5.06 million.

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Nissan lawyers declined to comment.

The suit alleges that company officials sent the dealership written requests for the $1.2 million and the remaining stock on the Infiniti lot before it filed the lawsuit Wednesday.

But corporation President Gary Nesen said that a reporter’s telephone call late Wednesday was the first he heard of any problems with the car maker.

“I’m not aware of anything like that at this time,” Nesen said.

Later, through a spokesman, Nesen said that if company officials do discover an outstanding debt to Nissan it will be “paid immediately.”

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And despite the request for the restraining orders, spokesman John Cooers remained optimistic that “there will be no interruption in service or sales” at Nesen Infiniti.

The lawsuit also offered a peek at the wholesale prices the Nesen company pays for its stock on the Infiniti lot. Contained in the court documents is a detailed list of each vehicle on the Infiniti lot and the price Nesen owes for each car.

For instance, Nesen owes Nissan $26,879 for each of the 1996 I30 Infinitis and $33,940 for each of the 1996 J30s on the lot. Nesen owes Nissan $45,232 for each of the 1996 Q45s and $23,513 for each of the 1996 G20s on the lot.

Cooers said Nesen’s nine dealerships--which sell everything from Rolls-Royces to Land Rovers--had sales of $200 million last year and employ 200 workers.

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