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Tuesday, 23 April 2019 18:14

VW, Audi Face Proposed Class-Action Lawsuit Involving CPO

Written by Joe Overby, Auto Remarketing

Index

 

Next, it alleges that defendants “sold certain Audi-branded and Volkswagen-branded corporate fleet vehicles (“Corporate Fleet Cars”) without disclosing that these CPO-designated cars had been regularly driven for testing and evaluation by members of the automotive press (“Press-Fleet Cars”) before these same vehicles were advertised and resold to unsuspecting consumers.

 

“Volkswagen misleadingly marketed these Corporate Fleet Cars as ‘CARFAX 1-Owner’ vehicles purportedly entitled to a price premium in the marketplace as a result of such ‘1-Owner’ status. Press-Fleet Cars, however, are significantly less valuable than similarly situated vehicles that have not been test-driven by a myriad of persons within the automotive press. Therefore, by misrepresenting the history of its Corporate Fleet Cars, Volkswagen was able to sell PressFleet Cars that it would not have been able to otherwise sell at a price it would not have been otherwise able to obtain,” the suit said.

 

And third, the defendants are alleged to have “sold certain Audi-branded and Volkswagen-branded vehicles without disclosing that these CPO-designated cars had been assigned to a pool of vehicles (the ‘Pool-Fleet Cars’) that were loaned for personal use by employees within VWGOA prior to being leased to a particular employee (the ‘LeasedFleet Cars’). These Leased-Fleet Cars were then advertised and resold to unsuspecting consumers. Volkswagen misleadingly sold these Leased-Fleet Cars as “CARFAX 1- Owner” vehicles purportedly entitled to a price premium in the marketplace as a result of such “1-Owner” status, even though Volkswagen knew that such Leased-Fleet Cars had been driven by a myriad of other individuals prior to being resold to consumers for more than those cars were otherwise worth had the true history of the Leased-Fleet Cars been disclosed.”

 

The law firm added in its news release: “Pre-production cars are often built with non-standard parts or using assembly practices that may not meet U.S. safety standards. They can't be certified to comply with federal motor vehicle standards and are normally destroyed or exported.


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