Jury Awards $43 Million in Volvo Sales Fraud Suit

08/02/96

A US District Court jury in San Juan, Puerto Rico has convicted Volvo Car Corporation of Sweden and a local Volvo dealer of defrauding thousands of customers by charging them luxury car prices for more economical cars. Because the jury found the defendants guilty of violating federal Racketeer Influenced Corrupt Organizations statutes (a.k.a., RICO) U.S. District Court Judge Jaime Pieras can triple the damages awarded to $129 million. An attorney for Volvo denied any wrongdoing by the automaker and said it would appeal.

The class-action lawsuit alleged that Trebol Motors Inc. made cosmetic changes to lower-price models of Volvo 200 series cars--such as adding aluminum wheels or leather seats. The dealership also removed "DL" insignia from some cars and replaced them with the "GLE," insignia found on higher-priced sedans. The cars were sold for thousands of dollars more than DL series cars, it said.

According to the jury's decision, more than 9,200 consumers who bought cars from Trebol between 1983 and 1994 will receive between $ 4,079 and $6,131 unless the verdict is overturned in appeal.

The lead plaintiff's attorney in the case said, "It is good that even when a conspiracy goes on for so many years that the people still win out."

At the trial, Nereida Melendez, Volvo's attorney, argued that the carmaker was unaware of any wrongdoing by Trebol. "I insist that Volvo is a clean, good company," she said.

Trebol's lawyers announced that the dealership was close to bankruptcy before trial and entered a no-contest plea. Volvo's attorneys filed a motion for a separate trial but the motion was denied.

Paul Dever -- The Auto Channel