|
According to Carscoops, Volkswagen of America is attempting to terminate its agreement with Prestige Imports in Pleasantville, New York, due to the dealer’s underperformance over the past decade.
Volkswagen has even taken legal action against the dealer, alleging breach of contract for failing to sell enough vehicles.
Prestige Imports entered into a dealer agreement with Volkswagen in 1998, agreeing to adhere to operating standards and annual sales targets.
According to the lawsuit filed in the New York District Court, Prestige Imports has failed to meet its sales KPIs. Since 2011, the dealer has only achieved slightly over half of its projected sales.
“Prestige Imports has long failed to effectively represent the Volkswagen brand and there is no valid justification for its poor performance,” Volkswagen stated, asserting that their patience has come to an end.
It is understood that Prestige Imports also distributes Subaru vehicles alongside Volkswagen brands.
|
Volkswagen stated that they first sent a warning message to Prestige Imports in October 2010, followed by another warning in August 2011 due to its inefficiency.
However, Volkswagen decided to continue the dealer agreement with Prestige Imports. By 2024, the German automaker sent a similar warning, setting April 1, 2024, as the deadline for Prestige Imports to “remedy its breaches of obligations regarding sales efficiency.”
This deadline was later extended to September 30, 2024, but according to Volkswagen, Prestige Imports failed to take the necessary measures to improve its business performance.
“Prestige Imports failed to spend any money on Volkswagen’s new car marketing plans in 2024,” the German automaker declared.
According to the lawsuit, residents living near Prestige Imports believe that the dealer has “failed to attract and retain customers effectively.”
Prestige Imports has also been named as one of Volkswagen’s least efficient dealers in New York State and its surrounding areas.
Recommended Books for Your Car Journey
The Xe category offers readers captivating book titles on various subjects. During your car journeys, there are bound to be moments of rest and relaxation, and books can be an engaging companion during those times.
The Ultimate Wordsmith: Crafting Captivating Copy for Aston Martin’s Electrifying Future
“Aston Martin Revamps Operations: Streamlining Workforce, Strategically Postponing Electric Vehicle Launch”
The luxury automotive brand is planning to lay off a significant number of employees as part of its financial turnaround strategy. In a bid to streamline operations and reduce costs, the company is making tough decisions to ensure long-term sustainability. This move is a bold statement of intent, demonstrating their commitment to emerging from this challenging period with a renewed focus and vigor.
The Ultimate Volkswagen Lineup: Unveiling the March 2025 Deals with Massive Savings of up to 400 Million VND.
The only Volkswagen model that isn’t offering any deals this March is the Viloran.
The Big Three’s Troubles: Volkswagen, Nissan, and Toyota Face US Tariff Headwinds
Data reveals that President Trump’s proposed tariff policy on Mexican and Canadian goods would impact around 20% of new cars in the US.
The Battle of the Brands: Blogger Faces Lawsuit Over Negative Review of the Maestro S800, While Huawei Fights Back
Huawei has taken legal action against an automotive blogger over critical comments made about their newly released Maextro S800.
The World’s Best-Selling Auto Maker for 5 Consecutive Years
Despite a dip in sales, Toyota has retained its crown as the world’s best-selling car manufacturer for the fifth year running.
