Mitsubishi Motors North America has taken a significant step by filing a federal lawsuit against Karmart Mitsubishi. The lawsuit, which alleges breach of contract and trademark standards, could have serious implications for the Washington-based dealership after failing to meet the automaker’s demands in a timely manner.
Mitsubishi Motors alleges the dealership committed a breach of contract by failing to comply with the brand’s mandatory Visual Identity Program. The program is a corporate initiative mandating standardized interior and exterior signage elements across all U.S. Mitsubishi dealerships to ensure consistent and unified branding. It’s designed to make dealerships “unmistakably Mitsubishi.” The automaker argues that the dealership’s noncompliance with the program confused the public and damaged the brand image.
The dealership was warned of its noncompliance in November and given a deadline to fix it by December 20. The dealer missed the deadline, a serious breach that prompted Mitsubishi to pursue legal action. This lawsuit follows on the heels of a similar dispute filed against John Deery Mitsubishi in Iowa in October 2024 for similar noncompliance with the mandatory Visual Identity Program.
However, the dealer’s noncompliance isn’t the only thing stoking the flames of the lawsuit. Mitsubishi alleges that the dealership violated its franchise agreement by sharing a service area with the neighboring Karmart Volkswagen franchise. Although the same dealership group owns both dealerships, the two automakers are competitors. Initially, the shared service agreement involved a now-closed Suzuki dealership and did not include Volkswagen as part of the arrangement. In addition, the dealership has allegedly been redirecting vehicles from its service area to the Volkswagen area.
The official complaint claims that Karmart Mitsubishi has declined to address the automaker’s concerns and refuses to cooperate despite Mitsubishi’s repeated attempts to resolve the issue amicably. This refusal has left the automaker with no choice but to seek legal action.
