The Michigan Department of State office has suspended the state license for a vehicle dealership in St. Clair County, citing "imminent harm to the public" and accusing the dealership of falsely selling loaners as new.

LaFontaine Chevrolet Buick GMC of St. Clair, located at 3050 King Road in China Township was cited as a result of an investigation that dates back to fall 2024, the Secretary of State office said. The license suspension is effective Tuesday. An end date was not stipulated. 

"The dealership may not conduct business during the time of the suspension," the notice said. 

In response, the company says a "long standing disconnect between automaker program definitions and state titling requirements has created widespread confusion among dealers across Michigan."

State officials explained the Michigan Department of State regulatory staff found in September 2004 that the dealership was registering new vehicles in the business's name to serve as loaner vehicles for their customers. After the vehicles were pulled from the loaner fleet, the dealership was then reselling them as "new" to customers, state officials said. 

The Department of State issued violations over those transactions. 

In a series of emails in October 2024, state officials and the Michigan Auto Dealers Association told all new vehicle dealerships to immediately stop selling used vehicles as new or risk administrative action by the department and a suspension of the dealer license. 

State officials said they had a teleconference in November 2024 with LaFontaine Chevrolet Buick GMC of St. Clair to discuss the inspection and violations. Follow-up steps included a $3,000 penalty and 18 months of probation for the company, along with required training for several representatives of the dealership. 

State officials then did a follow-up inspection of the dealership on Sept. 24, saying they "found more than two dozen instances of the dealership continuing to sell used vehicles as 'new.'" 

One of the examples was a vehicle that had up to 6,000 miles and was sold as new. 

"These violations created an imminent threat to the health, safety or welfare of the public, requiring emergency action," state officials said. 

The Department of State says customers who have a complaint against LaFontaine Chevrolet Buick GMC of St. Clair contact the MDOS Office of Investigative Services automotive complaint line at 844-372-8356. 

The company's website says the St. Clair dealership joined the LaFontaine Automotive Group in 2021. 

In response to the state's announcement, LaFontaine Automotive Group 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."