Florida VW, Audi dealers sue Scout Motors, alleging violation of franchising law
Volkswagen and Audi dealers in Florida are suing Virginia-based Scout Motors for moving forward with direct sales of its sport-utility vehicles to customers – an action the dealers allege violates the state’s Motor Vehicle Dealer Act.
The group of VW and Audi dealers filed the lawsuit on Feb. 3 in the 11th Judicial Circuit Court in Miami-Dade County. They argue that the Scout brand is 30% owned by the Volkswagen Group of America and is prohibited under the act from selling or leasing its vehicles to Florida retail consumers.
Florida’s law is similar to laws in other states that protect franchised auto dealers from competition from franchisor manufacturers or their common entities, according to the lawsuit.