Dealer Sues Over Lexus Point Lost in 1989
Longtime Wichita, Kan., Toyota dealer Mike Steven has sued the factory’s luxury division, claiming more than $120 million in damages stemming from a 30-year-old dispute over an unawarded Lexus franchise.

In 1989, 121 U.S. franchisees were given the opportunity to sell the first generation of Lexus vehicles, including the 1990 LS 400. Not among them was Kansas dealer Mike Steven, who is now suing the factory for millions in lost earnings.
Photo courtesy Toyota Motor Sales USA
WICHITA, Kan. — Former Toyota dealer Mike Steven and dealer group CFO Harold Johnson have filed a lawsuit against Toyota Motor Sales USA, seeking more than $120 million in damages under the federal Automobile Dealers Day in Court Act, The Wichita Eagle reports.
The pair allege Toyota and Lexus executives unlawfully conspired to deny the Steven Automotive Group one of 121 charter Lexus franchises in 1989, resulting in $108 million in estimated lost earnings, plus interest and legal fees.
Steven owned a Wichita, Kan., Toyota dealership from 1970 to 2016. In the lawsuit, he claims it was among the factory’s top-performing franchises and that he was promised Wichita’s Lexus point more than once, acquired property to house it, and was “devastated” to learn it was awarded to the competing Wittman-Gorges Auto Group, which was not a Toyota franchisee.
When he contacted J. David Illingsworth, then vice president and general manager of the Lexus brand, Steven says Illingsworth “tacitly threatened” Steven’s Toyota franchise, effectively persuading Steven to defer litigation. Later, he claims, he learned a Cessna executive who launched Toyota’s jet aircraft division influenced the point assignment in exchange for a stake in the new business.
Wittman and Gorges Lexus would later be sold to Scholfield Auto Group, which was also listed as a competitor for the franchise in court documents. The point is now owned by Walser Automotive Group, which is not party to the lawsuit.
In a statement emailed to the Eagle, a Toyota spokeswoman wrote, “We believe these claims related to events that allegedly occurred nearly 30 years ago are completely meritless and have no basis in the law.”
Earlier this month, an Orange County, Calif., jury awarded $15.8 million to another dealer, Roger Hogan, who claimed Toyota withheld inventory in retaliation for Hogan’s advocacy for more effective safety recalls.
To read the Wichita Eagle article, click here.
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →