Car dealers in Germany have taken Jaguar Land Rover (JLR) to court, stopping the car manufacturer from launching a planned subscription model. A district court in Frankfurt am Main put a halt on JLR’s “Jaguar & Land Rover Subscribe” via an injunction. Judges argued that the planned subscription model could breach the car dealers’ contracts.
JLR had planned to roll out its subscription model in partnership with ALD Autoleasing and Fleetpool Group, German trade magazine Automobilwoche reports. The car manufacturer wanted to sell the vehicles to ALD, which would have leased them on to Fleetpool. Fleetpool would have then offered the cars on a subscription model.
“We insisted from the beginning that this concept must be in accordance with the current contract,” said Rolf Weinert, member of the board of the JLR dealer association. “The dealers view this project as a clear breach of contract with the aim of opening a parallel sales platform bypassing the contractual partners.”
The court argued that a subscription, in contrast to a rental offer, would allow JLR to approach customers and bypass sales partners and car dealers. Weinert added that car dealers are not against subscriptions per se, but only if dealerships are directly involved in the process. The case is up for appeal.