Ford And Mecum Reach Agreement Over GT Supercar Consignment
- February 11, 2019
- Posted by Marc Enger
Following a turmoil-filled 2018, Ford Motor Company and Mecum Auctions have finally reached an agreement regarding the consignment of the GT supercar. The news comes after months of litigation with the auction house over its sale of a Ford GT in May 2018, as well as a separate, non-related controversy surrounding John Cena’s sale of his personal GT.
For those not up to speed, all purchasers of brand-new Ford GTs are required to sign paperwork prohibiting them from selling the car within the first two years of ownership. Back in May, auction-company owner Dana Mecum claimed to have circumvented this issue, saying “the judge did rule in Mecum’s favor that we can sell this car.” Immediately following the sale, however, the Blue Oval filed suit seeking to recoup damages from the early sale of the vehicle.
Eight months after the incident, the two have reached an agreement and provided details about how sales of the supercar will be handled from this point forward. The terms of the agreement are outlined as follows:
- Mecum will not accept for consignment sale any Ford GT owned by its original purchaser that is still subject to the two-year sales moratorium;
- Mecum will consult with Ford regarding any Ford GT consigned with Mecum by any downstream purchaser (i.e., not that GT’s original purchaser) for the first two years following the GT’s initial sale to the original purchaser, and will not permit the auction sale of that GT during that time without Ford’s consent; and
- Settlement proceeds from Mecum will be donated to the Ford Motor Company Fund.
In other words, Ford has the final say over which GTs are and are not allowed to be consigned with Mecum within the first two years of the car’s original production date—regardless of who currently owns the car. And though this specific agreement is between Ford and Mecum, we expect other auction houses will try to avoid a similar hassle by following these rules as well.
Report by hagerty.com