Ford Files Lawsuit to Rescind GT Supercar Sale in Canada

Ford Motor Co. has filed a lawsuit over an alleged conspiracy to improperly acquire and resell a custom-built 2018 Ford GT “supercar” in Canada for more than double the price. According to the Ford GT lawsuit, this is in violation of Ford’s 24-month prohibition against reselling the car.

Ford reportedly custom-built eight 2018 GTs for purchasers in Canada.

The defendants named in the Ford GT lawsuit include the president of Silver Arrow Cars in Victoria, B.C., the former CEO of Element Fleet Management Corp. of Toronto, the former CEO of Element Financial Corp., and vehicle servicing firm Engineered Automotive of Concord, Ontario.

The new GT model is reportedly worth $690,800. Ford accuses the defendants of flipping the GT and selling it for more than double the price within a few weeks.

According to the Ford GT lawsuit, Ford learned that the GT was offered for sale in Europe. A buyer in Hong Kong had reportedly purchased the vehicle from an exotic car dealership in Richmond, B.C.

In November, Justice Edward Morgan upheld a temporary injunction blocking the transfer or sale of the Ford GT until the case is decided at trial. A trial in the Ford GT resale lawsuit has not yet been scheduled.

Because very few “supercars” like the GT are manufactured, Ford is selective about who is able to purchase the vehicle, the judge wrote in his order. Dealers and collectors often buy expensive vehicles for promotional purposes.

To prevent buyers from flipping, Ford explicitly prohibits the sale or reconveyance of the GT for 24 months. Ford says this type of resale restriction is common for exclusive cars to help protect the brand and maintain excitement about the vehicle.

According to the Ford GT lawsuit, the motor company initially negotiated to sell the GT supercar to a purchaser who, Ford later found out, did not have ownership interest in a holding company allegedly controlled by the purchaser’s business associate.

The holding company sold all of its shares to Timothy Quocksister, who operates a collectible and luxury cars dealership called Silver Arrows Cars, just 20 days after the initial sale of the GT, the court documents state. Silver Arrows sells most of its cars to global buyers. He reportedly sold the vehicle to SR Auto Group for more than $1.7 million on May 1, 2018, the same day he purchased it.

SR Auto Group then resold it to “an undisclosed buyer from Hong Kong,” according to the Ford Gt Lawsuit.

The defendants deny any wrongdoing and blame the situation on others or claim that they were not aware of the prohibition on reselling the vehicle.

Ford wants to rescind the original sales agreement and prohibit any transfer or sale of the vehicle. Ford’s GT lawsuit seeks $1 million in damages for breach of contract, misrepresentation, plus attorneys’ fees.

What do you think about this lawsuit? Tell us your thoughts in the comment section below!

Ford is represented by Hugh DesBrisay and Corey Groper.

The Ford GT Supercar Lawsuit is Ford Motor Co. v. Quocksister, et al., Case No. CV-18-00602802, in the Ontario Superior Court of Justice, Canada.

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