Franchise owner files class action suit against Volkswagen
The owner of several Volkswagen franchises across the country and in the suburbs has filed a class-action lawsuit against the car manufacturer in the wake of a diesel emissions-rigging scandal.
Ed Napleton, owner of several Volkswagen dealerships through the Westmont-based Napleton Dealership Group, filed the lawsuit Wednesday in Chicago. Two of Napleton's Florida dealerships and an Urbana dealership were named as plaintiffs in the case, but none of his suburban dealerships were.
Napleton claims Volkswagen "defrauded" dealers by installing emission "defeat devices" on diesel-using vehicles that were government tested. He claims the fallout from the scandal has reduced the value of Volkswagen vehicles that rely on diesel fuel and caused a "loss in value of the VW brand post-Dieselgate (delivering) a devastating blow to dealers' profits and the value of their franchises."
"Franchise owners are now left with lots full of CleanDiesel vehicles they are unable to sell, and these cars have suffered tremendous loss of value and take up inventory space and carrying costs," said Napleton attorney Steve Berman.
Additionally, the suit claims Volkswagen franchise owners were punished by the manufacturer if they didn't participate in a financing program through Volkswagen Credit.
While initially sluggish after the fallout of the scandal, Volkswagen sales have rebounded in recent months and Forbes magazine reported last month that Volkswagen and Toyota were neck-and-neck in sales figures for the year. Volkswagen is reporting more sales in January and February 2016 than during the same period from the year before, well ahead of the scandal breaking, according to the report.