Stellantis and Ford Motor Company now find themselves aligned in a legal battle on two fronts against the same dealership group, Iowa-based Sky Auto Mall, which faces allegations of fraud tied to floorplan financing. The case first surfaced earlier this month when Stellantis filed suit, but Ford’s formal entry has greatly expanded the scale of the dispute and strengthened its implications both financially and in terms of internal controls across the industry.
Stellantis and Ford join forces in a legal fight against the same dealership group
According to the filings, Stellantis Financial Services first uncovered the irregularities and alerted Ford Credit in February after spotting anomalies in the financing extended to the dealership. Ford then launched its own investigation, which reportedly uncovered a group of vehicles financed at the same time by both institutions. That finding strengthened the initial allegations and further worsened Sky Auto Mall’s position.
Stellantis argues that the dealership defaulted on a floorplan agreement signed in November 2023, yet continued to obtain financing for vehicles that had allegedly already been pledged to another lender. According to the complaint, that practice continued for months even as the dealership’s financial condition kept deteriorating.
Ford Credit’s filing, submitted on March 5, adds particularly significant details to the picture. A review of inventory records allegedly uncovered 81 vehicles tied to double financing, while the dealership also allegedly kept more than $1.4 million in proceeds from vehicle sales. Ford Credit further claims that Sky Auto Mall exceeded its credit limit by more than $1.2 million, significantly increasing the total financial exposure. When the claims from both sides are combined, with Stellantis seeking more than $12.3 million and Ford Credit seeking more than $6.6 million, the total exposure in the case rises above $18 million.
The operational consequences appeared very quickly. Sky Auto Mall laid off 76 employees shortly after the lawsuits were filed, a sign of the financial and legal pressure now coming at the dealership from two of the world’s largest automotive groups at the same time. The fact that two major finance companies compared their data and identified the same irregularities also raises questions that go beyond this single case, including the effectiveness of the control systems the industry uses to monitor floorplan financing.
The case could have broader consequences for the auto retail market, especially at a time when pressure from online vehicle buying is pushing some operators to chase margins through increasingly aggressive practices. With Stellantis and Ford now aligned on the same side, it is reasonable to expect tougher scrutiny and less tolerance for the gray areas that still shape parts of the relationship between automakers and dealer networks.
