Volvo Trucks North America Inc., along with its parent company Volvo AB, is being sued for $500 million by the owner of a major distributor of Volvo trucks.
The suit asks for damages allegedly violating anti-trust laws that drove Great Basin Cos. Inc. out of business. Great Basin lost dealerships in Idaho, Nebraska, Utah, Nevada, Arizona, New Mexico and West Texas. The suit is reportedly the largest ever filed by a heavy-duty truck franchise holder against its commercial truck supplier.
Filed in U.S. District Court in Salt Lake City, UT, the suit alleges the truck maker, its parent corp., a finance unit (Volvo Commercial Finance LLC) and two former officers of Volvo's North America operation, violated agreements with dealers.
Eric Jackson, CEO of Great Basin, told Land Line the suit also claims former executives used concessions and residual values to control truck pricing and reduce dealer profit. "They reneged on promises to dealers," he said. "The dealers then couldn't keep promises to customers because they weren't paid themselves."
--Donna Carlson, staff writer