When Volvo Group North America LLC sought to sell its semi trucks in the Indianapolis area, the company turned to veteran auto dealer Andy Mohr to help it gain a foothold in the market.
Volvo Trucks awarded Mohr a five-year contract to sell its trucks in April 2010. But, just two years into the relationship, the Greensboro, N.C., division of the Swedish automaker is suing Mohr, claiming he fraudulently induced it to enter into the franchise agreement.
The relationship between the two could get even messier, though, as a lawyer for Mohr says he’ll likely file a lawsuit against Volvo Trucks in the next week.
Volvo Trucks is seeking unspecified damages for lost market share and lost profits of more than $100,000, and wants the contract rescinded, according to the federal suit filed April 5.
The company claims Mohr, who has auto dealerships in Indianapolis, Avon, Fishers and Plainfield, enticed it to enter into the agreement by making several promises Mohr has been unable to fulfill.
Volvo Trucks said in its suit that Mohr has failed to sell 500 trucks per year, build a new sales facility, place an initial order of $1 million in parts, and purchase five new parts-delivery vans, all of which Volvo says he guaranteed.
“Despite receiving the dealer agreement for no money, and despite its many specific promises and commitments, Mohr Truck failed to fulfill its promises and commitments,” Volvo Trucks said in its complaint.
The Andy Mohr Truck Center is located at 1301 S. Holt Road on the southwest side of Indianapolis.
Mohr’s attorney, Robert MacGill of Barnes & Thornburg, said Volvo Trucks is to blame for the broken relationship, not his client.
“Andy Mohr Truck Center has notified Volvo of its claim for damages arising from Volvo’s conduct in inducing the sale of the franchise,” MacGill said.
MacGill declined to elaborate but said details of Mohr’s argument will be provided in the suit he expects to file.
This article originally ran in the April 11, 2012, issue of IBJ Daily. The Indianapolis Business Journal is a sister publication to IL.