Glaser Weil Litigation Team Prevails as LA Superior Court Rejects Sony Honda’s Attempts to Dismiss CNCDA Suit

Glaser Weil is pleased to announce a significant development in its representation of the California New Car Dealers Association (CNCDA) in high‑stakes litigation involving Sony Honda Mobility of America, Inc., and American Honda Motor Co., Inc. On March 9, the Los Angeles County Superior Court overruled a series of demurrers filed by the defendants, allowing CNCDA’s lawsuit to proceed to discovery.

CNCDA alleges that Sony Honda and American Honda are knowingly violating California’s franchise laws—including Assembly Bill 473 (AB 473)—by competing directly with Honda and Acura franchised dealers through the planned distribution of Afeela‑brand electric vehicles. Despite AB 473’s clear prohibition on automakers using affiliated entities to circumvent franchise networks, Sony Honda has been accepting $200 online reservation deposits from California consumers and has announced plans to deliver Afeela vehicles directly to California buyers beginning in 2026.

In its ruling, the court found that Sony Honda’s “Reservation Agreement” constitutes the first step toward purchasing an Afeela vehicle and rejected the defendants’ efforts to characterize the reservation process as harmless or preliminary. The court further determined that Sony Honda is sufficiently affiliated with American Honda for the alleged statutory violations to proceed.

With the court’s order, CNCDA’s case now advances into discovery and the next phase of litigation. CNCDA continues to seek declaratory and injunctive relief to halt unlawful direct‑to‑consumer Afeela sales and enforce California’s franchise protections.

California’s franchised dealers are vital contributors to the state’s economy, selling more than 1.85 million new vehicles annually, employing more than 138,000 residents, and generating billions in tax revenue and charitable contributions. CNCDA’s litigation aims to preserve the integrity of the state’s franchise system, ensuring fair competition, consumer protection and continued investment in local communities.

Glaser Weil’s legal team is led by litigation partners Michael Cypers and Julie Gerchik with significant support from litigation associates Andrew Dane and Olivia Weiss.

For more information, read CNCDA’s press release.

This lawsuit is one of two major actions in which Glaser Weil represents CNCDA. In a separate case filed in April 2025, CNCDA challenges Volkswagen and its affiliate Scout Motors for alleged franchise‑law violations related to direct‑to‑consumer distribution of Scout‑branded vehicles.