Fourteen California Volkswagen dealers have filed protests at the state’s New Motor Vehicle Board challenging Volkswagen and its Scout Motors subsidiary over plans to sell Scout vehicles directly to consumers, opening a second legal front against the automaker’s direct-to-consumer strategy. The California New Car Dealers Association announced the filings May 1. The protests allege Volkswagen […]
Federal Court Allows Auto Dealer Lawsuit Against Volkswagen, Scout Motors to Proceed
California new vehicle dealers association says direct sales plan violates unfair competition laws, California franchise rules. A federal court has denied motions to dismiss the central claims in the California New Car Dealers Association’s (CNCDA) lawsuit challenging Volkswagen’s use of Scout Motors to sell vehicles directly to consumers, bypassing its franchised dealer network. The ruling, […]