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Dealership Fire & Government Investigations

July 13, 2017 0 Comments

This is your look a dealership news from all around the nation and more!

First off, KGW is reporting that on July 11 Volstice Auto out of Portland, Oregon lost at least 13 cars with 30 others damaged in a fire. A nearby house fire spread to the lot, causing widespread vehicle destruction. This apparently isn’t the first time that a fire has occurred in the neighborhood of the dealership. It’s at least the third fire incident inside of a year. A man staying in a house behind the dealership reportedly has been seen acting erratically and was living in cars on a scrap lot behind the dealership at the time of the fire. A customer reportedly flew from Alaska to pick up a Corvette he purchased from the store, however it was damaged in the fire.  The dealership plans to refund his money and pay for his flight back home.


Next up, as Stuff reported, two dealerships, Direct Auto Importers and Cheap Deals on Wheels were fined $65,000 by the government. The dealerships allegedly had employee compensation and agreement issues. The disagreement involves the dealership not paying required minimum wages as well as a dealer principal saying the staff members in question are contractors and not subject to the same laws as regular employees. The allegations against the stores also allege they didn’t pay their staff holiday pay. Both dealerships are located outside of the United States in New Zealand.

Finally, according to CBS-Boston, used vehicle dealership AutoDrive One based out of the Boston, Massachusetts area, has been under investigation by the state attorney general’s office. The dealership stands accused of selling poorly functioning vehicles and using so-called “bait and switch tactics.” The dealership has been ordered by the state AG to pay $50,000 in restitution to former customers. CBS Boston spoke to the dealership GM who said he has reduced the number of dealerships from six to two and stated, “I’ve been able to really put my hands on things and make sure every customer is satisfied with the products we’re giving them.” The story indicates the dealership could be forced to pay “$240,00o in civil penalties,” if they don’t honor a settlement agreement part of the investigation.

This has been your look at dealership news from all around the USA, and beyond!

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The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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