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.
Originally posted on Auto Dealer Today
More Showroom

California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →
Used EVs Outpace New
While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.
Read More →