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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. 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. CBS News Detroit has reached out to LaFontaine Automotive Group for comment and is awaiting reply.
