State regulators today banned a troubled Tucson car dealership from issuing temporary registration plates, an action that could make it difficult for the lot to continue selling vehicles.
Wildcat Mitsubishi, 5200 E. Speedway, was issued a cease-and-desist order this morning by the inspector general's office of the Arizona Department of Transportation. The department’s motor vehicle division is the chief licensing agency for auto dealers in the state.
The 45-day temporary registrations enable the orderly transfer of vehicles from dealerships to new owners. They provide a window of time in which to obtain a vehicle's new title and permanent license plates and registration.
The dealership has 30 days in which to request an admistrative hearing to review the ban.
Wildcat’s parent firm, Johnston Shield Inc., filed for bankruptcy protection on Thursday as the Arizona Daily Star was preparing to publish results of the newspaper's investigation into the firm’s questionable business practices.
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Bankruptcy filings show Johnston Shield owes the Internal Revenue Service $1.035 million — which the paperwork shows as being “disputed” — and owes the Arizona Department of Revenue $242,640 in sales tax and $40,370 in payroll tax.
An investigation by the Arizona Daily Star published Sunday found a series of problems at the dealerships, including sales of damaged vehicles, calling police on customers and filing false documents with the state Motor Vehicle Division that allowed them to sell cars and trucks with salvage titles.
The company had said it planned to stay in business through the bankruptcy.
Read Sunday's Star investigation, "AZ probes complaints vs. Wildcat Mitsubishi," or today's story about Johnston Shield Inc.'s bankruptcy filing, "Parent of Wildcat cars seeks Chapter 11."
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