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The stakes just got higher for Volkswagen dealerships. One dealership learned that if you don’t sell enough cars then you might get sued. However, the dealership has been struggling with low sales since 2011. 

Volkswagen sues dealership over low sales 

A Volkswagen dealership in New York is under fire for under performing. According to Motor 1 Volkswagen fo America (VWoA) sued Prestige Imports due to a low sales performance. 

VW also wants to end its dealer agreements with the retailer. Allegedly, the dealership has cost VW about 1,5000 new car sales since 2011. Plus, hasn’t done enough to correct the problem. 

Prestige Imports received its first notice about sole sales in 2010. Then VW gave it an official “Notice of Default” on August 15, 2011. It gave the dealership until February 28, 2012, to turn things around. 

It was then extended to December 13, 2013, but the dealership still struggled. It sort of went under the radar until 202 3when Volkswagen slammed Prestige again. VW was frustrated over unacceptable results. 

A new Notice of Default gave it until September 30, 2024, to improve sales. However, it didn’t and VW claims that Prestige ignored suggestions for boosting sales and offers of assistance. Prestige didn’t spend a single dollar on advertising VW cars and SUVs in 2024. 

VWoA shared that the long standing poor sales not only constitutes a material break of fundamental contractual obligations, but also provides clear due cause for termination under the applicable New York statute governing termination of a motor vehicle dealership franchise.

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Allison Barfield

Allison Barfield joined MotorBiscuit in 2020 and covers all things trucks, SUVs, and Jeeps. Having grown up on a farm in Rock Hill, South Carolina, she’s no stranger to the “Best in Class” truck and SUV debates; people in her hometown were always gathering to help work on vehicles together, and deliberation would naturally arise.

Allison graduated from the University of South Carolina with a degree in Media Arts. She has helped bring awareness to issues Women In Trucking face and has promoted Truckers Against Trafficking, an anti-trafficking NGO.

A fan of creatively dark literature, Allison appreciates the works of Shirley Jackson and Emily Dickenson. She lives in a mountainous area of the country and enjoys off-roading and camping. Her dog, Bruce, often joins her in testing trucks and SUVs for our site.