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.
Volkswagen Group of America, a subsidiary of German-based Volkswagen Group, filed the lawsuit in the U.S. District Court for the Northern District of Illinois in December 2022, questioning the constitutionality of the “Multiplier Act” amendment that structured the relationships among manufacturers, distributors, franchisees and dealers.
