VW franchise dealers in US sue the automaker for compensation

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Volkswagen franchise dealers in the United States seek compensation for losses they suffered over the diesel scandal.

The diesel scandal has caused Volkswagen’s franchise dealers significant financial losses over the cars they cannot sell and the automaker’s inability to agree on a fix with the US regulators by now makes the damages increase even more. Three family-owned Volkswagen franchise dealers filed a lawsuit accusing the company of fraud for fitting the cheating devices in diesel cars and claiming compensations, Bloomberg reported. They also seek to represent all franchise dealers in the US in a class action. “Franchise owners are now left with lots full of CleanDiesel vehicles they are unable to sell, and these cars have suffered tremendous loss of value and take up inventory space and carrying costs,” one of the lawyers said. “Volkswagen has wholly failed to respond to dealer concerns in a substantive manner,’’ the dealer said in a statement. “It has talked for months about multiple plans, but done nothing and left us dealers in the red, and in limbo.’’

The company is facing more than 500 civil complains in the United States related to the emissions scandal. Last month, the district Judge Charles Breyer gave to Volkswagen an April 21 deadline to make a deal with the US Justice Department, the Environmental Protection Agency and California Air Resources Board over a fix for the 580,000 over-polluting diesels. The new time extension was set after the German automaker missed the previous 24 March limit to reach an agreement

Via Bloomberg