Board votes to settle contentious Ford relocation dispute

In a recent meeting of the Texas Department of Motor Vehicles (DMV) Board, two contested cases were addressed, with significant implications for local automotive dealerships.

The first case involved a franchise relocation protest between Tommy Vaughn Ford and Chastang Ford, both licensed dealers in Houston. The dispute arose from Chastang Ford's proposed relocation, which Tommy Vaughn Ford contested. After a hearing held in July 2023, an administrative law judge (ALJ) found good cause for the relocation. However, both parties subsequently sought to settle the matter, filing a motion for an agreed order to dismiss the case entirely.

During the meeting, representatives from both dealerships expressed their desire to resolve the issue amicably and return to business. The board unanimously voted to accept the agreed order, effectively dismissing the case and allowing Chastang Ford to proceed with its relocation application.

The second case involved Whaley Boy Incorporated, which faced allegations of misusing temporary buyer tags and failing to meet licensing requirements. The ALJ recommended a one-year suspension of Whaley Boy's general distinguishing number (GDN) and a civil penalty of $17,400 for the misuse of 174 temporary tags. The DMV's enforcement attorney presented the case, emphasizing the seriousness of the violations and the need for revocation of the GDN as a warranted sanction.

The board was tasked with deciding whether to accept the ALJ's proposal for decision or to amend it. The enforcement attorney highlighted the ongoing nature of the violations and the importance of maintaining regulatory standards. The board's decision on this case remains pending as they consider the evidence and recommendations presented.

These cases underscore the DMV's commitment to upholding regulatory compliance within the automotive industry, balancing the interests of local businesses with the need for adherence to state laws and regulations.