CHINA TOWNSHIP, Mich. (WXYZ) — The Michigan Department of State has suspended the license of LaFontaine Chevrolet Buick GMC of St. Clair, Inc. for allegedly violating the Michigan Vehicle Code.
Officials accuse the China Township dealership of:
- Violating existing/current probation and the Alternative Penalty Agreement previously imposed by MDOS
- Committing fraudulent acts in connection with selling or otherwise dealing in vehicles by presenting and selling used vehicles to customers as new vehicles.
- Failing to properly complete MDOS title and registration applications by falsely indicating used vehicles as new
According to the Department of State, the dealership was registering new vehicles to the business for use as loaner vehicles for customers. After they were used as loaners, officials say, the dealership resold them to customers as new.
Officials say the practice was discovered during a compliance inspection in September 2024, and the Michigan Department of State and the Michigan Auto Dealers Association issued emails in October 2024 directing all new-vehicle dealerships to stop selling used vehicles as new, or risk action by the department, including suspension of the dealership's license.
Following communication and administrative action with the dealership, officials conducted a follow-up inspection on September 24, 2025, and say they found more than two dozen instances of the dealership selling used vehicles as new, including one that had 6,000 miles on it. This led to the suspension, during which the dealership may not conduct business.
In response to the action taken by the Department of State, LaFontaine Automotive Group has issued the following statement:
LaFontaine Automotive Group confirms that the State of Michigan has issued a temporary suspension of the dealer license for LaFontaine Chevrolet Buick GMC St. Clair. This matter arises from a clerical error in the completion of RD-108 documentation — a paperwork issue that has created confusion between automaker program requirements, dealer processes, and the State of Michigan’s regulatory statutes.
LaFontaine Automotive Group has always operated in full compliance with automaker programs and remains dedicated to maintaining complete alignment with state regulations. Unfortunately, a long-standing disconnect between automaker program definitions and state titling requirements has created widespread confusion among dealers across Michigan.
Under current manufacturer and lender definitions, vehicles utilized in manufacturer-approved rental or service loaner programs fully qualify as new vehicles. In nearly every other state, modernized statutes reflect this reality and allow these vehicles to be titled and sold as new. However, Michigan’s outdated titling laws still require such vehicles to be classified as used, even though they meet all qualifications for new vehicle incentives and warranties.
As a result, these vehicles are sold to customers as titled used cars — despite being eligible for new-vehicle benefits — a regulatory inconsistency unique to Michigan. Contrary to recent misleading statements from the Michigan Department of State, no fraudulent activity has occurred. Consumers have continued to benefit from lower-priced vehicles that remain eligible for new-vehicle incentives and warranties under GM’s approved programs.
LaFontaine Automotive Group respectfully urges the State of Michigan to collaborate with automakers and dealers to modernize and align state regulations with current industry standards. Such alignment would ensure consistent compliance expectations, transparency, and consumer protection across the automotive marketplace.
Upon notification of the temporary suspension, LaFontaine immediately began working closely with state officials to review internal processes, correct documentation, and ensure full compliance moving forward.
As a family-owned organization, LaFontaine Automotive Group takes great pride in its long-standing reputation for honesty, integrity, and guest satisfaction. We remain deeply committed to maintaining the trust of our valued guests and the communities we serve while working diligently with the State of Michigan toward a swift and fair resolution.
In announcing the suspension, officials say consumers who have a complaint against LaFontaine Chevrolet Buick GMC of St. Clair, Inc. can call the MDOS Office of Investigative Services automotive complaint line at 844-372-8356.
