LOS ANGELES
Trophy Universal City Group, LLC and Trophy West Covina Motor Group, LLC (“Trophy Group”) have filed a lawsuit against Nissan North America, Inc., accusing the automaker of orchestrating a deliberate and nefarious scheme to suffocate vehicle inventory and squeeze out the Trophy Group. The case centers on two Los Angeles County Nissan dealerships—Universal City Nissan and West Covina Nissan—led by global automotive entrepreneur and Trophy Group founder and CEO, Nasser Watar, only to face what Trophy Group alleges is retaliatory sabotage by Nissan. Trophy Group is represented by Amnon Siegel and Bryan Redfern of Miller Barondess, LLP.
A Legacy of Success and Partnership
Since Trophy Group’s founding more than ten years ago, Nasser Watar, a veteran of the automotive industry, expanded Trophy Group to operate numerous successful dealerships in Southern California, including leading brands such as Mercedes-Benz and Kia. Its dealerships rank among the top-selling in the nation for their respective brands.
In addition to his U.S. operations, Watar has played a significant role in Nissan’s international distribution, particularly in the Middle East. From 2008 to 2019, he served as Vice Chairman, President and CEO of Nissan Gulf Company, a joint venture between Nissan Motor Co., Ltd. (“Nissan Japan”) and Al-Dahana Group. During Al-Dahana’s joint venture with Nissan Japan, Watar was CEO of Al-Dahana, as well as Nissan Gulf. Under Watar’s leadership, Nissan Gulf significantly expanded Nissan’s market presence, becoming the second-largest market leader in the Middle East and the most profitable Nissan subsidiary worldwide.
Nissan’s Initial Plea for Help
In 2017, recognizing Watar’s expertise, Nissan approached him to take over two struggling Los Angeles County dealerships—Universal City Nissan and West Covina Nissan. These once-successful dealerships had fallen into financial distress under their previous owner, Sage Automotive Group. Nissan sought Watar’s leadership to restore them to profitability, and Trophy Group acquired the dealerships. Initially, the transition was positive. With Nissan’s support, Watar and his team worked diligently to rebuild the dealerships’ reputation and performance.
Retaliation Following the Ghosn Scandal
In 2018, the arrest of former Nissan Japan CEO Carlos Ghosn sparked global controversy. As details emerged, Nissan Japan sought to sever ties with individuals and entities linked to the scandal—including Watar’s former business partner at Al-Dahana. Despite no allegations against Watar himself, Nissan unilaterally terminated its Gulf distribution partnership, prompting Al-Dahana to file suit. In 2021, Al-Dahana secured a $354 million judgment against Nissan Japan in Dubai.
In response, Nissan allegedly undertook a secret retaliatory campaign against Watar and Trophy Group’s U.S. dealerships, aiming to drive them out of business. Per the complaint, Nissan systematically under-allocated vehicles to Universal City Nissan and West Covina Nissan, depriving them of essential inventory while favoring nearby competitors.
The Impact of Nissan’s Unlawful Actions
New vehicle allocation is the lifeblood of any dealership, and Nissan’s alleged actions created a devastating cycle: reduced inventory led to lower sales, which in turn resulted in further reduced allocations. Despite Watar’s repeated pleas for fair treatment, Nissan allegedly refused to provide the necessary inventory, deliberately crippling the Trophy Group’s Nissan dealerships and eventually forcing them to close their doors.
Nissan’s alleged actions have resulted in millions in damages to Trophy Group and have also deprived consumers of competitive options in the Los Angeles market. Trophy Group is pursuing all available legal remedies against Nissan for its alleged targeted campaign of economic destruction.
“Nissan’s conduct represents an abuse of power and a blatant disregard for proper and fair business practices,” said Amnon Siegel. “We will not allow Nissan to unlawfully eliminate a trusted and dedicated dealer through manipulation and bad faith and look forward to the opportunity to present our case to a jury.”
