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LAWSUITS NEWS & LEGAL INFORMATION

Sales Incentives

Toledo, OH: (Mar-12-08) Chrysler LLC brought a lawsuit against Vin Devers Inc. in Detroit federal court in May, 2006, alleging that the dealership made inappropriate use of dealer incentives. Vin Devers, located on 5570 Monroe St. in Sylvania, OH, sells Dodge, Mercedes, and Audi vehicles, but the suit claimed that the dispute is over only the Dodge cars. Vin Devers counter sued two months later.

Court records state that Chrysler's suit alleged that the dealership improperly handled incentive purchases starting Jan. 1, 2000, and submitted false information to boost payments. Chrysler officials said that the company paid Vin Devers more than $8 million for various incentive programs, but did not indicate how much money was in dispute. Vin Devers' suit alleged that Chrysler had subjected the dealership to excessive audits and that it had refused to share any findings. Devers claimed that it had alerted Chrysler, in 2007, to potentially inappropriate actions from salespeople involving incentive programs before the automaker had detected the irregularities.

As a result of the lawsuits, State and federal authorities launched their own investigations into the dealership in 2007. Sources stated that in a recent development, the two parties had reached a settlement agreement, resolving the dispute. As for the terms of the settlement, both sides refused to disclose any details. [TOLEDO BLADE: VIN DEVERS, CHRYSLER TO SETTLE LAWSUITS]


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Published on Mar-13-08


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