Row over parting of ways sees distributor seeking 8-figure compensation
By Christopher Tan 8 April 2009
A dispute between a local motor distributor and a German vehicle maker is to be heard in the High Court.
Former Volkswagen representative Car & Cars - owned by entrepreneur Peter Kwee - is suing the Wolfsburg-based manufacturer of Golfs and Passats for compensation over a bitter parting of ways. A pre-trial conference is due at 9am today.
Car & Cars is represented by senior counsel Lok Vi Ming of Rodyk & Davidson. Volkswagen - the world’s third largest auto maker after Toyota and General Motors - is represented by Mr. Chan Kia Pheng, a partner at KhattarWong.
The Straits Times understands the dispute is in two parts. The first pertains to Volkswagen becoming its own importer here in 2005, relegating Car & Cars to the role of dealer. The second was when the German company took over the entire retail business from Car & Cars in 2007.
The turn of events came soon after Car & Cars completed a $25 million showroom, which Mr. Kwee described as ‘a long-term commitment’ to grow the VW brand.
Mr. Kwee said Volkswagen ‘did not fulfil their side of the bargain’.
‘They lured me into giving up the importership,’ he said.
His unhappiness revolves around an undisclosed sum of compensation that he said VW was supposed to pay Car & Cars.
Mr. Kwee said the German car manufacturer dragged its feet, and that ‘the spirit of the settlement is not there’.
Volkswagen Group Singapore managing director Olaf Duebel had said that the split with Car & Cars was ‘very complex’ and that its due diligence had taken longer than expected.
Later, it contended that Mr. Kwee did not provide details such as his bank account number.
Mr. Kwee, who secured the Volkswagen franchise in 1999, dismissed Volkswagen’s claims.
‘I have e-mail proof that I gave my bank account number. Also, they can always pay me in cash,’ he had said in an earlier interview.
When VW finally got to sending a cheque, Mr. Kwee rejected it, saying the payment breached an agreed deadline.
About six months ago, through Rodyk & Davidson, he sent letters of demand to both Volkswagen Group Singapore and its parent group Volkswagen AG.
He is said to be seeking an ‘eight-figure sum’ in compensation.
Mr. Duebel of Volkswagen Group Singapore was not contactable yesterday. His office said he is on holiday in Bali and would not have e-mail access.
Legal battles between local motor agents and car manufacturers are rare. One notable case was between former Cadillac representative Top Marques and General Motors. Top Marques, helmed by businessman Derek McCully, contested a franchise termination notice and sought compensation back in 2002.
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Peter Kwee-VW case in High Court
Row over parting of ways sees distributor seeking 8-figure compensation
By Christopher Tan
8 April 2009
A dispute between a local motor distributor and a German vehicle maker is to be heard in the High Court.
Former Volkswagen representative Car & Cars - owned by entrepreneur Peter Kwee - is suing the Wolfsburg-based manufacturer of Golfs and Passats for compensation over a bitter parting of ways. A pre-trial conference is due at 9am today.
Car & Cars is represented by senior counsel Lok Vi Ming of Rodyk & Davidson. Volkswagen - the world’s third largest auto maker after Toyota and General Motors - is represented by Mr. Chan Kia Pheng, a partner at KhattarWong.
The Straits Times understands the dispute is in two parts. The first pertains to Volkswagen becoming its own importer here in 2005, relegating Car & Cars to the role of dealer. The second was when the German company took over the entire retail business from Car & Cars in 2007.
The turn of events came soon after Car & Cars completed a $25 million showroom, which Mr. Kwee described as ‘a long-term commitment’ to grow the VW brand.
Mr. Kwee said Volkswagen ‘did not fulfil their side of the bargain’.
‘They lured me into giving up the importership,’ he said.
His unhappiness revolves around an undisclosed sum of compensation that he said VW was supposed to pay Car & Cars.
Mr. Kwee said the German car manufacturer dragged its feet, and that ‘the spirit of the settlement is not there’.
Volkswagen Group Singapore managing director Olaf Duebel had said that the split with Car & Cars was ‘very complex’ and that its due diligence had taken longer than expected.
Later, it contended that Mr. Kwee did not provide details such as his bank account number.
Mr. Kwee, who secured the Volkswagen franchise in 1999, dismissed Volkswagen’s claims.
‘I have e-mail proof that I gave my bank account number. Also, they can always pay me in cash,’ he had said in an earlier interview.
When VW finally got to sending a cheque, Mr. Kwee rejected it, saying the payment breached an agreed deadline.
About six months ago, through Rodyk & Davidson, he sent letters of demand to both Volkswagen Group Singapore and its parent group Volkswagen AG.
He is said to be seeking an ‘eight-figure sum’ in compensation.
Mr. Duebel of Volkswagen Group Singapore was not contactable yesterday. His office said he is on holiday in Bali and would not have e-mail access.
Legal battles between local motor agents and car manufacturers are rare. One notable case was between former Cadillac representative Top Marques and General Motors. Top Marques, helmed by businessman Derek McCully, contested a franchise termination notice and sought compensation back in 2002.
The court ruled in favour of GM.
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