Volkswagen threatens legal problems in Saudi Arabia. A former Bentley dealer has filed a lawsuit against the Wolfsburg company at the Jiddah Commercial Court, where the Sharia law is imposed, according to the German Newspaper, “Welt am Sonntag”.
The company of a sheikh claimed in his lawsuit a loss of around one billion Saudi riyals (240 million euros) because Bentley had refused on the instructions of VW to agree to the entry of another investor in the business. Due to the sales crisis in the country, the sheikh in 2016 was looking for new donors.
Obviously, there were also interested companies that made at least non-binding offers for entry or acquisition, writes the newspaper. But Bentley would have to agree according to a dealer agreement, a new investor and this agreement have rejected the brand, the report goes on.
The reason is a requirement of the parent company, therefore, the lawsuit is now directed against VW. In Wolfsburg, you do not want to comment on the dispute officially. “A possible complaint of a former sales partner of a group brand in Saudi Arabia against Volkswagen AG has not been delivered to us,” said a spokesman for “Welt am Sonntag”.
“For this reason, we can not comment on the relevant content of a claim.” From group circles, it is said that Bentley has terminated the contract with the dealer properly because they were no longer satisfied with the performance of the company.
That’s why they have chosen a different partner in Saudi Arabia.