Due To Low Sales, Volkswagen is Suing A US Dealership

Volkswagen has reached its limit and is taking decisive action by filing a lawsuit against a United States dealership over poor sales of its vehicles.

It’s not often that a parent company decides to end its relationship with an official representative, or rather, a dealership that represents it. That’s exactly what’s been happening in recent months in the US state of New York, where Volkswagen has decided to file a lawsuit against Prestige Imports.

And things are pretty clear. Volkswagen claims that the company has been failing to meet its agreed-upon sales volume for more than a decade, so they were forced to file a lawsuit for breach of contract. Namely, the dealer signed a contract with Volkswagen America back in 1998, according to which it must adhere to certain standards and annual sales goals.

According to the lawsuit, Prestige Imports has failed to meet its agreed sales targets in any year since 2011. More precisely, it has only achieved half of its agreed sales since then.

In its lawsuit, VW claims that “Prestige has long failed to effectively represent the Volkswagen brand and has no valid excuse for its poor performance,” adding that patience “has justifiably come to an end.”

Despite Volkswagen repeatedly warning the company and pushing back deadlines, most recently to September 30, 2024, VW says Prestige has failed to implement the necessary measures to get back on track. According to the lawsuit, Prestige is one of VW’s worst-performing dealers in New York State and the region, and possibly the entire United States.

The lawsuit also alleges that customers who live near Prestige are choosing to purchase VW products from other nearby dealerships, indicating that the retailer is “failing to effectively attract and retain customers,” Auto News reports.

• Read More: Audi And Volkswagen Will Continue To Use Internal Combustion Engines