A Volkswagen vendor in New York won’t be a part of the franchise for much longer. Volkswagen of America (VWoA) has sued Status Imports for its poor gross sales efficiency, and the automaker is trying to finish its vendor settlement with the retailer. In accordance with the grievance, Status has price the automaker 1,500 new-vehicle gross sales since 2011 and has executed little to repair the issue.

VWoA first contacted Status about its low gross sales in 2010 earlier than sending an official “Discover of Default” dated August 15, 2011. It initially gave Status till February 28, 2012, to enhance its gross sales metrics, which VWoA prolonged to December 31, 2013. Status nonetheless failed to enhance its gross sales, however the automaker continued working with the retailer for a number of years.

Nonetheless, by mid-2023, VWoA grew pissed off at Status’s “unacceptable outcomes,” and despatched a brand new “Discover of Default.” The automaker prolonged the remedy interval till September 30, 2024, however Status “continued to disregard a lot of VWoA’s ideas for enchancment and affords of help,” in keeping with the submitting. Status allegedly reported spending zero {dollars} on promoting new VW autos in 2024.

“Status’s longstanding poor gross sales efficiency not solely constitutes a fabric breach of its elementary contractual obligations, but additionally gives clear “due trigger” for termination below the relevant New York statute governing termination of motorcar dealership franchise,” VWoA mentioned in its grievance.

Status Imports didn’t instantly reply when reached by Motor1 concerning the lawsuit. VWoA, in the meantime, informed Automotive Information it doesn’t touch upon pending litigation.