VW Dealers in U.S. Poised to Sue Over Diesel Scandal

Volkswagen dealers in the U.S. could file a class-action lawsuit against the carmaker as soon as Monday if VW fails to compensate them for lost business resulting from the brand’s diesel emission cheating.

Dealer attorney Leonard Bellavia of Mineola, N.Y., tells Automotive News he has a complaint ready to file and will do so as soon as his unidentified clients agree.

VW executives are scheduled to meet with dealers on Saturday during the National Automobile Dealers Assn.’s annual convention in Las Vegas to discuss reparations. The company’s U.S. retailers have been unable to sell diesel models, which normally account for about 20% of their volume, since VW admitted last September to rigging 580,000 diesels to evade emission standards.

VW’s American dealer council is advising calm until the company has a chance to present a plan. But the council says details aren't likely until VW reaches agreement with the Environmental Protection Agency about how to fix the cheater diesels.

In the meantime, AN notes, the company has eased sales bonus targets for dealers and wired them monthly “discretionary” payments as great as several tens of thousands of dollars.