VW Cars Sdn Bhd to pursue legal action against VGM

Back in Nov 2009, VW Sdn Bhd, the then master dealer of VW vehicles in Malaysia had their dealership terminated with immediate effect by Volkswagen Group Malaysia Sdn Bhd (VGM). The news came very sudden and there were many speculations as to reason behind the sudden fallout. Prior to their termination, VW Cars was operating two dealerships in the Klang Valley, a "boutique store" in The Curve and another outlet in Jalan 219, PJ as well an outlet in Ipoh. The gap has since been filled by F.A. Wagen Sdn Bhd, the latest dealer appointed by VGM. F.A. Wagen is a unit of Federal Auto Group, which also operates Volvo dealerships and have been servicing VW vehicles in its Sg. Besi outlet for some years already.

Below is a press release, stating VW Cars intent to pursue legal action against VGM on their termination.

Kuala Lumpur, 4 February 2010: VW Cars Sdn Bhd has recently filed a civil action against Volkswagen Group Malaysia Sdn Bhd (VGM), arising from the contractual dispute between the two companies. VW Cars is claiming for a substantial amount of damages from VGM, based on its cause of action which is contained in the relevant court documents filed into court. This civil action was filed in the High Court of Malaya at Kuala Lumpur and the Court Documents have since been served on VGM.

VW Cars Sdn Bhd is a subsidiary of Cartrade Group Sdn Bhd, operated by Ilyas Alex Chan Abdullah. Prior to their appointment as a VW master dealer, Cartrade was the sole importer of BMW vehicles, before their termination by BMW Malaysia, which has since assumed all vehicle importation duties on their own.

An interview with Ilyas Abdullah on BFM can be downloaded here.