Volvo Cars Honolulu is suing its distributor, Volvo Car USA, saying the company has engaged in unfair business practices.
In the lawsuit filed in federal court, the local dealership says it was forced into wrongfully inflating reports of new car sales.
Volvo Honolulu says the distributor also continued to ship new cars, resulting in overstocked lots.View the lawsuit in its entirety here.
Recently, the distributor failed to renew its license in Hawaii, resulting in a shutdown of new car sales for several weeks.
Volvo Car USA released the following statement in response: “Volvo Car USA filed legal action against this retailer in December 2016 for serious issues unrelated to their allegations. Volvo Car USA refutes the accusation that the company coerces retailers to ‘punch’ cars.”
In that lawsuit, Volvo Car USA claimed that Volvo Cars Honolulu “surreptitiously and fraudulently altered certain standard provisions of the agreement before sending a signed copy back to the Plaintiff’s office in Irvine, California for countersignature,” which allegedly included transferring the cost of transporting vehicles to Hawaii.View the lawsuit in its entirety here.