CNCDA Files Lawsuit Against Sony Honda for Violation of California Franchise Laws
American Honda/Sony Honda Mobility Circumventing Dealer Partners in Afeela Sales
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
SACRAMENTO, CA, August 22, 2025 — The California New Car Dealers Association (CNCDA) has filed a lawsuit in Los Angeles County Superior Court against American Honda Motor Co., Inc., Sony Honda Mobility, Inc., and Sony Honda Mobility of America, Inc., for knowingly violating California’s franchise laws. The complaint alleges unfair competition, false advertising, and seeks declaratory relief to stop illegal direct-to-consumer sales of Afeela-brand vehicles.
Sony Honda and its partners are operating in direct violation of Assembly Bill 473 (AB 473), a 2023 law prohibiting automakers from using affiliated brands to compete with their own franchised dealers. Despite this law, Sony Honda and its partners are taking $200 deposits directly from California consumers through its website for upcoming Afeela vehicles, thus bypassing the state’s Honda and Acura dealerships.
“This is a direct attack on the 161 franchised Honda and Acura dealers in California that have been loyal partners in building the brand’s reputation and success for decades,” said Brian Maas, CNCDA President. “At the time of AB 473’s review by the California legislature, Sony Honda sought to block the (now) law that would make their direct sales of Afeela vehicles illegal. They are now knowingly violating the law, hoping they won’t be caught. It’s our job to protect the dealers who are directly harmed by their actions.”
“By cutting dealers out, they’re stripping vital consumer protections like local service support, transparent pricing, and warranty assistance, all while undermining the millions these dealers have invested in their facilities, employees, and communities. We will not allow a manufacturer to turn its back on the very network that made it profitable in the first place,” said Maas.
CNCDA is seeking immediate injunctive relief to halt these unlawful sales, along with enforcement of state law to protect California’s dealer network and the consumers they serve.
California’s franchised dealers are key economic drivers, selling more than 1.85 million new cars and trucks, employing over 138,000 Californians, and generating more than $8.8 billion in sales tax revenue. In 2024, dealers donated nearly $71 million to charitable and civic organizations statewide.
The filed complaint can be read here.
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About CNCDA
For over 100 years, the California New Car Dealers Association has represented California’s franchised new car and truck dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles and provide automotive products, parts, services, and repairs. CNCDA is the Nation’s largest state association of franchised automotive dealers, with nearly 1,200 members, and provides legal compliance and legislative, regulatory, and legal advocacy.