Florida Volkswagen and Audi Dealers Challenge VW Scout

BSM is representing twenty-eight (28) Volkswagen and Audi dealers in Florida challenging Volkswagen Scout’s plans to sell vehicle direct to consumers.  The lawsuit has been filed in Florida state court – Miami-Dade County Complex Business Litigation section arguing that VW Scout’s acceptance of deposits from Florida residents to purchase a Scout vehicle violated Florida law.

Florida law specifically lists the acceptance of deposits as part of the definition of the selling activities of a motor vehicle dealer.  In Florida, the “common entity” of a franchised motor vehicle manufacturer is prohibited from acting as a motor vehicle dealer.  Common entity is defined as an entity that has more than 30 percent of its equity interest directly or indirectly by an entity who also directly or indirectly owns more than 30 percent of a manufacturer, an importer, a distributor, or a licensee, or an affiliate thereof.  VW Scout is wholly owned by Volkswagen AG which also is wholly owns Volkswagen of America, which is a licensed manufacturer in Florida.

The Florida VW and Audi dealers’ challenge to VW Scout is the first filed in the United States.