Agreements between automobile manufacturers and dealerships prohibiting export of
new automobiles.
3. Automobile manufacturers, including Mercedes Benz, General Motors, Toyota,
Volkswagen, Audi, and Porsche, have long-standing contractual agreements with their dealerships
that new automobiles made for sale inside the United States may not be sold to individuals or
companies intending to export the new automobiles outside the United States
4. Automobile manufacturers impose this prohibition on not exporting new automobiles
because unauthorized exports of their new automobiles cause numerous financial problems to the
manufacturers by creating problems in the manufacturers’ distribution markets, causing market
infringement problems, harming franchise dealerships, and causing problems relating to vehicle
recall registration and service.
5. The contractual agreements between automobile manufacturers and dealerships carry
monetary penalties, commonly called “charge backs,” which automobile manufacturers may assess
against dealerships if the manufacturers determine that dealerships are selling new automobiles to
purchasers who intend to export them rather than use them in the United States.
6. In order to determine whether new automobiles are being exported in violation of
these contractual agreements, automobile manufacturers monitor export documents and records at
ports throughout the United States. Automobile manufacturers hire a company, PIERS, a division
of UBM Global Trade, Inc., to collect such documents and records, in part so that the manufacturers
can determine whether new automobiles are being exported in violation of their agreements with
dealerships not to do so.
7. Automobile manufacturers have assessed monetary and other penalties against
automobile dealerships, including those listed above in paragraph 3, when the manufacturers
determine that the dealerships have sold new automobiles which were exported directly from the
United States.
8. Many dealerships, in order to avoid penalties under their contractual agreements with
manufacturers not to sell new automobiles which will be exported, take additional steps in dealing
with customers to obtain assurances from customers that the customers are not going to export the
new automobiles. These additional steps sometimes require that purchasers of automobiles sign
statements, commonly called “do not export agreements,” that they do not intend to export the new
automobiles after purchasing them.
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