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LaFontaine Automotive Group says the matter that led to the State of Michigan suspension of its St. Clair dealership license has been resolved and the business is back open. The Michigan Department of State issued a press release Tuesday saying that it had suspended the license of LaFontaine Chevrolet Buick GMC of St. Clair in China Township, citing an investigation that dates back to fall 2024. The dispute involved claims by state officials that the dealership was selling previous loaner vehicles to customers as "new" to customers. State law requires all such vehicles to be considered used, even if they meet a car company's stipulations for new vehicle incentives and warranties. One of the examples state officials said 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 Michigan Department of State has not issued an update publicly on the suspension status. But a spokesman for LaFontaine sent CBS Detroit a statement Thursday saying the suspension has been lifted, and that the dealership is "100% back in business across both sales and service operations." "This issue was purely administrative in nature — stemming from confusion between automaker program requirements, dealer processes, and the State's outdated regulatory statutes. Frankly, the speed at which this matter was resolved reinforces our belief that the initial action was more of a headline-driven move by the State than a substantive compliance concern," the company said. "Importantly, there was no imminent threat to public safety, no systemic "scheme," and absolutely no guest impact whatsoever. Our commitment to integrity, transparency, and the trust of our guests remains unwavering, and we continue to operate in full partnership with both our automaker and lender partners."
