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Mackie Motors seeks £18m compensation over ‘destruction’ of Brechin car dealership

Kevin Mackie, who is also Brechin City chairman, has spent more than £2m on lawyers.

Kevin Mackie, former owner of Mackie Motors. Image: Paul Reid
Kevin Mackie, former owner of Mackie Motors. Image: Paul Reid

The former owner of Mackie Motors is demanding compensation of £18 million for the “destruction” of his Brechin car dealership.

Kevin Mackie said the business — set up by his parents Ron and Janie in 1977 — was cut off from the supply of new vehicles and financing.

This meant he was faced with the choice of making 75 staff redundant or selling his company.

The businessman, who is also chairman of Brechin City Football Club, sold Mackie Motors to Park’s Motor Group in 2022.

Now Mr Mackie is threatening fresh High Court proceedings against car firms Renault, Nissan and finance company RCI.

Mackie Motors operated Renault and MG dealerships in Brechin and sold new Nissan vehicles in Arbroath.

Car and finance firms interlinked

In November 2021, Mr Mackie was informed that finance company RCI was terminating a two-year contract with seven days’ notice.

RCI, Renault and Nissan are interlinked. Renault and Nissan own stakes in each other’s companies. RCI is owned by Groupe Renault and also trades as Nissan Finance.

Under the Renault and Nissan franchise agreements, it was a requirement for Mackie Motors to use RCI to offer PCP finance deals to customers.

The notice meant he could no longer offer finance to customers and Mackie Motors was also frozen out of being able to order new vehicles and parts.

Fresh information since previous Mackie Motors High Court action

Mr Mackie says he has spent in excess of £2m on lawyers’ fees in the past three years.

He previously took legal action against RCI at the High Court in London in 2022.

However, the claim has been thrown out, with the judge determining that he could have sourced a finance provider elsewhere. He also lost an appeal.

The Mackie Motors sign is already replaced with Park’s in Brechin’s Clerk Street.

Now he is threatening a new round of legal action, saying more information has come to light.

He said: “Thanks to former employees and a whistle-blower, it’s been brought to my attention that Renault and Nissan stopped the supply of parts and cars to cease me being able to operate. They were not in court last time.

“I’ve done nothing wrong. The bank (RCI) destroyed our business along with Renault and Nissan.

“If they had terminated me in a normal manner, I would have found alternative franchises and I would still have been operating.

“They took the family brand and destroyed it overnight after 45 years.

“This is not just about Kevin Mackie and Mackie Motors. This is about how the bank can destroy lives, kill livelihoods and then just turn the page.”

Mackie Motors compensation could exceed £18m

In the claim prepared for the intended litigation, Mackie Motors alleges that RCI, Nissan and Renault all, virtually simultaneously, cut off access to critical operational systems used to order parts, process sales, and provide aftersales support.

Mackie Motors is seeking compensation for lost profits, business value and unreimbursed investment in seized vehicle stock.

Mr Mackie says the claim for damages, to be further determined by expert valuation, will be in excess of £18m.

He added: “We were left unable to operate, with no justification ever given.

“This goes beyond a simple commercial dispute. It is about respect, transparency, and the principle that no business, no matter how large, should be allowed to act with impunity or disregard for longstanding relationships.

“We are determined to hold those responsible accountable.”

Angus MP Dave Doogan has previously raised Mackie Motors’ closure in a House of Commons debate.

Responses from RCI and Renault

A spokesperson for RCI said: “We will not comment on ongoing legal matters beyond noting that previous claims by Mackie Motors (Brechin) Limited were robustly dismissed by three separate courts, including the High Court and the Court of Appeal. They all concluded that we acted lawfully regarding our contract with Mackie Motors.”

A Renault UK spokesman said: “We cannot comment on ongoing legal matters, beyond noting that previous claims made by Mackie Motors were struck out in their entirety by both the High Court and the Court of Appeal.”

Nissan did not respond to a request to comment.

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