VW Franchisee Program Harms Competition, Suit Claims

Law360, New York (September 4, 2012, 10:15 PM EDT) -- Volkswagen of America Inc. was slammed with a lawsuit in Florida federal court on Thursday by a franchisee that claims the automaker's performance plans set unreasonably high expectations and harm competition by creating price disparities between rival dealers.

Reeves Import Motorcars Inc. claims that Volkswagen's dealer incentive plans, which issue cash rebates on new vehicles to the highest performing franchisees, harms competition because it allows rivals to lower their prices and attract more customers, leaving lesser performers in the dust.

"The favored dealers who receive discounts...
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