VW diesel scandal: California dealers are taking the company to court image

Independent car dealerships in California have decided to have German automaker Volkswagen AG taken to court claiming heavy losses would come as the company admitted it had cheated on emissions tests in the United States.

Half a million vehicles in the US and around 11 million across the world have been equipped by the largest automaker in the world by sales with special software on diesel-powered models to deliver better than real-life pollution data. According to the case lawyer, Robert Starr, a proposed class action lawsuit has been filed in California federal court with independent car dealers in the state being the plaintiffs and damages sought would be of at least one million dollars. Immediately after finding out on Friday from the US Environmental Protection Agency the German carmaker had rigged diesel emissions tests, dozens of lawsuits – mostly on behalf of drivers of the affected cars – have started pouring in. According to Starr, franchised dealerships of Volkswagen and Audi cars could receive some form of compensation directly from the company to mitigate future losses, but independent dealerships have only one way – the lawsuit.

This week on Monday the company sent a letter to its US dealers calling for a “mandatory stop-sale order” for 2009-2015 models equipped with the company’s ubiquitous two-liter diesel engine, with dealers reimbursed for their expenses as repair instructions would follow soon. The plaintiffs lawyer claimed the independent dealers were not offered a similar compensation arrangement and if they continue to sell the affected vehicles they could be facing their own lawsuits – started by consumers.

Via Reuters