Volkswagen AG has been hit by lawsuits over its emissions cheating debacle from just about every angle. But one group has so far been conspicuously unwilling to sue the carmaker: Volkswagen’s 650 franchise car dealers in the U.S. Observers say the franchisees, which received monthly goodwill payments in 2015, likely have valid claims but may be skittish about suing the parent company—for now, at least.
Volkswagen was issued a notice of violation of the Clean Air Act by the Environmental Protection Agency back in mid-September after a research lab in West Virginia discovered the car manufacturer was cheating on its emissions tests. The EPA charged the carmaker with improperly using a defeat device in its diesel vehicles that would evade clean air standards, an allegation the carmaker later admitted was true.
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