Planet Earth for all of that extra atmospheric C02?
Volkswagen has problems. Like billions of dollars in problems at the moment and in the coming years. In the wake of the diesel emissions scandal, governments worldwide are planning to go after the German automaker for all of that excess C02 emissions. Outright lying and covering up those lies has consequences. And now we've come across a new report from Automotive News that another US-based lawsuit is brewing against VW. Who could it be this time? Its own dealership network.
A class action lawsuit has been prepared by a "prominent dealer attorney" named Leonard Bellavia. He says he's ready to file the suit on behalf of US dealers who've "sustained damage" following the scandal. Why hasn't it been filed yet? Because those dealerships are waiting to see what kind of compensation settlement VW will offer them. In fact, VW executives are discussing with their US dealers right now a reparations proposal at the National Automobile Dealers Association convention in Las Vegas. "My goal is that VW and the dealers can reach a settlement on amicable terms without the added distraction of litigation," Bellavia stated.
But why announce a potential class action suit if VW and its US dealers are already trying to work something out? To pressure VW. A VW dealer council memo, revealed last week, stated many dealers "have reached a breaking point and feel that pursuing a legal course is the only option." As long as VW fairly compensates its dealers, the suit will be avoided. If not, well...