Mazda terminates dealer contract


The Canadian Press is reporting that Mazda Canada has terminated the dealer contract with Orangeville of Mazda for “breaching the company’s business practices.”

News of the termination comes just days after media outlets reported the dealership had sold a vehicle for more than thousands of dollars above its real value.

A representative for Mazda Canada reportedly said the automaker had conducted an investigation into the matter and “found other violations.”

When Canadian AutoWorld contacted the dealership, a receptionist confirmed the contract had been terminated but said there was no one who could provide a comment at this time.

The matter stems from the sale of a 2010 Mazda6 last December. A woman named Madeline Leonard told the Toronto Star she went to the dealership to replace her tires, but ended up driving away the owner of a new car.

The issue surrounded the price of the car, a whopping $66,000 for a version of the sedan. News agencies had reported the model as a G6 that usually stickers for around $41,000. Mazda does not offer a “G6” model. Mazda does have a GT-V6 model with an MSRP of $36,695.

Leonard said the salesmen talked quickly and, before she knew it, had her signed up for eight-year loan.

After researching her purchase a few days later, Leonard realized she had been taken advantage of and complained to the Ontario Motor Vehicle Industry Council.

Once the story hit the news last week, dealer principal Sunny Bains said he fired his business manager and sales manager and agreed to return Leonard’s trade-in and tear up her contract.

“In my opinion, everyone thinks we did something wrong,” Bains told the Toronto Star. “Therefore, I’m going to fix the situation. I do apologize for what she went through and suffered.’’

Canadian AutoWorld contacted Mazda Canada but there has been no official confirmation from the automaker about the dealer contract cancellation.

OMVIC has charged the dealership, Kien Trung and Mohammed “Moe” Shaikh with “engaging in unfair practice by making an unconscionable representation” contrary to the provincial Consumer Protection.

- With files from The Canadian Press and The Toronto Star