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VW Cars sues Volkswagen over lost dealership

By Zuraimi Abdullah

Published: 2010/02/06

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VW CARS Sdn Bhd, owned by Cartrade Group's Datuk Ilyas Mohamed, is believed to have sought several hundred million ringgit in compensation from Volkswagen Group Malaysia Sdn Bhd (VGM) in its civil suit against the German carmaker.

The amount is rumoured to be some RM500 million but people close to the matter said it is less than that.

"But it's still a few hundred million ringgit," one of them said.

VW Cars filed the civil action against VGM at the Kuala Lumpur High Court recently. This was after the former was axed by the German car distributor as an authorised dealer last November following an ongoing contractual dispute.

VW Cars said on Thursday that it was seeking a substantial amount as damages after losing its dealership.

Meanwhile, VGM has confirmed that it had received the notification of the suit.

In a brief statement issued yesterday, the company said the matter is being handled by its lawyers.

VW Cars was the largest dealer for VGM, accounting for some 40 per cent of the total Volkswagen sold in the country.

About 885 Volkswagen vehicles were sold here last year, fractionally lower than some 900 units a year before.

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