Ford and Mecum have reached a settlement that bars the auction company from offering any new Ford GTs within the first two years of their existence. This is a bit ironic as the announcement comes less than a week after Ford and Barrett-Jackson teamed up to sell a 2019 Ford GT Heritage Edition for $2.5 (£1.9 / €2.2) million.
Getting back to the Ford and Mecum dispute, the auction house offered a 2017 Ford GT at the Spring Classic Auction in Indianapolis, Indiana on May 19th, 2018. The car was sold for $1.6 (£1.2 / €1.4) million.
This upset Ford as the GT’s ownership agreement prevents buyers from reselling the car within the first two years. Ford also noted the auction “potentially caused confusion with Ford GT owners and the general public” about whether or not the cars could be resold.
Ford eventually filed suit against Mecum in Marion County, Indiana. That case was recently settled on terms that are “designed to promote mutual good will and business respect.”
According to the agreement, Mecum won’t offer any Ford GTs owned by original purchasers that are still subject to the two year ban on reselling the vehicle. Mecum will also have to consult Ford about any “downstream purchaser” who acquires a Ford GT within its first two years. Mecum will also be barred from auctioning these models, even though they’re not owned by someone who is subject to the Ford GT ownership agreement.
The settlement also included a monetary award, but there’s no word on how much money Mecum will have to fork over. Regardless, the money will be donated to the Ford Motor Company Fund which focuses on improving community life, education and safety. The fund says these efforts include everything from providing scholarships and health care to hosting Ford Driving Skills for Life events.
The two companies also said they urge “original purchasers of Ford GTs [to] abide by the terms of their agreements in order to avoid controversy.” That’s a subtle way of saying Ford will sue you, even if your name happens to be John Cena.