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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

 

“The lawsuit alleges that in order to boost sales, Volkswagen diverted the vehicles to its CPO program. Then, when it faced the likelihood of public scrutiny, Volkswagen engineered a ‘sneaky recall’ that was delayed for two years until May 2018 and offered to buy back far fewer vehicles than the number allegedly sold illegally under the CPO program. (NHTSA Campaign Number: 18V329000).”

 

Volkswagen Group of America and Audi of America did not immediately respond to requests for comment.

 

Carfax declined to comment.

 

Auto Remarketing reached out to compliance expert Randy Henrick for reaction to this development. A leading voice about compliant advertising practices, Henrick was Dealertrack’s regulatory and compliance counsel for 12 years and now conducts industry consulting at www.autodealercompliance.net.

 

“The allegations, if true, would constitute serious violations by Volkswagen of multiple federal and state automobile consumer protection laws and regulations,” Henrick said via email on April 12. “In the aftermath of Dieselgate, it is hard to imagine that Volkswagen would perpetrate another fraud on U.S. consumers. Their reputation and possibly their survival as a viable brand in the U.S. market is at stake.

 

“Trust is not a quality that can easily be regained, especially in the motor vehicle industry,” he added.

 

Auto Remarketing staff writer Nick Zulovich contributed to this story. 

 

We thank Auto Remarketing for reprint permission.


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