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Vehicle Exports: Scams and Schemes Create Enforcement Morass at Ports

Automotive practice group leader Aaron Jacoby spoke with Automotive News about unlawful (and lawful) exports of luxury automobiles from the U.S. to Russia and China.

This is a murky area between criminal fraud and breach of private contracts, through which automakers try to enforce export prohibitions for new vehicles bought at U.S. dealerships.  In the meantime, shady exporters sneak vehicles out of the country in violation of laws that ban exports of vehicles with pending liens.  No trade law prevents a person who owns a car free and clear from shipping it overseas. But automakers frown on the practice because it is difficult to respond to recalls and warranty issues in terms of contacting the owner, having the correct parts on hand and complying with regulations when vehicles are built differently for each market. It also undercuts sales for dealers in the foreign country.

Read the Automotive News article


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