BSM Represents 10 New York VW and Audi Dealers in Lawsuit Against VWoA

BSM has been retained by ten (10) Volkswagen and Audi dealers in New York to challenge Volkswagen of America’s response to New York’s new warranty time guide reimbursement law.  BSM has filed petitions for administrative hearing on behalf of these dealers before the New York Department of Motor Vehicles.  The petitions seek a ruling that VWoA’s warranty reimbursement procedures prevent dealers from obtaining payment under independent time guides as required by New York law.

New York’s Fair Reimbursement Statute was amended in 2024 to require manufacturers to reimburse dealers for non-retail repair work using the independent time guide the dealer wishes to use for its non-warranty, retail repair work.  Unlike most other manufacturers, VWoA has created submission procedures which prevent dealers from obtaining the benefit of the Fair Reimbursement Statute.  Although the new law clearly views the dealer’s use of an independent time guide on a prospective basis, VWoA has demanded that dealers submit repair orders demonstrating prior use of the independent time guide.  Many dealers did not utilize an independent time guide prior to enactment of the new law.