Do you own or operate a Volkswagen dealership? VW may have violated its Volkswagen Dealer Agreement by selling Scout EVs directly to consumers. Contact us »
WHAT'S THE ISSUE?
Hagens Berman represents a proposed class of Volkswagen dealership owners against VW accusing the automaker of attempting to shirk its contractually bound legal responsibilities by selling its new Scout EV vehicles directly to consumers. This action directly violates its own Volkswagen Dealership Agreement, which outlines clearly that car sales only happen through VW dealerships. According to the lawsuit, over 150,000 individuals have already paid for reservations to purchase Scout vehicles, depriving dealerships of their rightful profits.
HOW DO I KNOW IF I’M AFFECTED?
The class-action lawsuit against Volkswagen is on behalf of a proposed class of all US persons and entities who own or operate a Volkswagen dealership via a Volkswagen Dealer Agreement. If your dealership fits this definition, contact our legal team today.
VW’S ALLEGED DECEPTION
In 2021, Volkswagen AG obtained the Scout brand when it acquired American truck manufacturer International Motors (Navistar). After this acquisition, VW has attempted to break its contractual agreement with its own dealerships by selling online reservations for purchase while vehicles are in production. Reservations cost $100, and more than 150,000 reservations have been made, depriving dealerships of at least $15,000,000 in missed revenue from reservation deposits alone.
The lawsuit claims that dealerships have missed out on this profit in addition to:
- loss of prospective vehicle sale profits,
- loss of future warranty parts and labor revenues,
- loss or reimbursement for customer-pay future repairs,
- loss of after-sale gross profits, finance reserves and insurance commissions,
- loss of used vehicle trade-in opportunities and related gross profits, and
- loss of cross sales of other VW model vehicles.
WHAT DOES VW’S DEALER AGREEMENT SAY?
Each Volkswagen dealership across the country enters into a standard “Dealer Agreement,” which in turn incorporates by reference a “Standard Provisions” document.
The Standard Provisions document imposes the following obligations on VWoA: “VWoA will sell and deliver Authorized Products to Dealer in accordance with this Agreement,” and “In the conduct of its business, VWoA will: [] Avoid all discourteous, deceptive, misleading, unprofessional or unethical practices.” Defendants have breached, and aided and abetted the breaching of, the Dealer Agreement and its Standard Provisions by refusing to sell “Authorized Products” to the dealers, according to the lawsuit.
HOW CAN A CLASS-ACTION LAWSUIT HELP?
A class-action lawsuit allows individuals and small businesses to collectively bring claims against conglomerates like Volkswagen that would otherwise face no accountability. We believe VW has breached its contract with dealership owners and has violated other laws dictating business relations. A successful class action could require Volkswagen to pay damages, cease its direct-to-consumer sales practices and potentially pay other costs.
TOP AUTOMOTIVE LAW FIRM
Hagens Berman is one of the most successful automotive litigation law firms in the U.S. and has achieved settlements valued at more than $21.7 billion for class members in lawsuits against automakers regarding defects, emissions cheating and more. The firm’s award-winning auto litigation team brought prior successful litigation against Volkswagen on behalf of dealership owners when it achieved a $1.2 billion settlement in the aftermath of the Dieselgate emissions-cheating litigation, in which the firm also played a leadership role, culminating in a separate $14.7 billion settlement, the largest ever achieved against an automaker. Additionally, the firm represented FCA dealership owners against the automaker for practices that allegedly harmed dealers. Your claims will be handled by attorneys experienced in this area of litigation.
NO COST TO YOU
In no case will any class member ever be asked to pay any out-of-pocket sum. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the legal team for the class.
