Volkswagen dealership. Credit: Jonathan Weiss/Shutterstock Federal Judge Dismisses Volkswagen Suit Challenging Illinois 'Multiplier Act'
The multiplier act did not bar Volkswagen from informing customers that the statute requiring manufacturers to reimburse dealers for services related to manufacturer-provided limited warranty was the reason for an increase in price or prohibited the company from raising prices to cover expenses, the judge held.
May 09, 2024 at 05:55 PM
3 minute read
What You Need to Know
- Voklswagen lost its challenge to an Illinois law defining the relationship between car dealers and manufacturers.
- The federal judge dismissed the suit without prejudice, leaving Volkswagen the opportunity to relitigate its claims.
- In the state, legacy manufacturers cannot operate service centers at their Illinois dealerships, leaving the dealers responsible for the warranty repairs on the customers' vehicles.
A federal judge this week granted the Illinois secretary of state's motion to dismiss a lawsuit brought by Volkswagen that challenged an amendment to the Illinois Motor Vehicle Franchise Act in which the dealerships that sell and service new cars are independent from the "legacy" manufacturers that produce them.
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