As discussed last week, lost in the chaos about Volkswagenâ€™s deception in fooling regulators about the emissions of its â€œcleanâ€ diesel engines is the very real economic damages of used car dealers who purchased VWs for resale.Â Those small businesses are now left holding the bag because of VWâ€™s deception. The same is true for branded VW dealers who have hundreds of thousands of dollars â€” if not millions â€” in inventory that now canâ€™t be sold.
Having to hold that inventory causes serious economic harm to dealers.Â That is because there is a daily cost for holding pre-owned inventory on a used car lot and used cars lose their value while sitting on a used car lot for an extended period of time. Profit margins for used cars begin to dramatically decline after the vehicles are on a lot for more than 30 days. Further, there are costs incurred in holding vehicles in inventory.Â The same is true for new vehicles, sitting on branded VW dealersâ€™ lots.
Those small business owners might need to buckle in for a long ride.Â This morning, Volkswagen announced that it will launch a massive recall in January of the VW cars that have been affected by this scandal.Â Evidently, a software update might be sufficient for most cars, but other vehicles might require new fuel injection equipment and catalytic converters.
VW said that the recall wonâ€™t begin until at least the new year and only after German authorities have approved the companyâ€™s plans to fix the cars.Â And even when it starts, VW does not believe that it will be completed until the end of 2016.
So small business owners â€” used car dealers and VW branded dealers â€” are looking at several more months â€” if not a year â€” until a real fix is instituted and the economic pain caused by VWâ€™s deception can begin to subside.
If you or a loved one have purchased any of these vehicles, please contact the attorneys at Chhabra & Gibbs, P.A., at 601-948-8005 or by going to our website at http://www.cglawms.com . You deserve to be compensated. It doesnâ€™t cost you anything to call and talk to an attorney to see what options you have.