Mass. Dealerships Say Volvo Shorts Them On Service Pay

By Brian Dowling (July 30, 2021, 1:00 PM EDT) -- A pair of Massachusetts Volvo dealers Thursday accused the Swedish automaker of underpaying them for maintenance they perform under prepaid service plans in violation of a Bay State law designed to level the playing field between dealerships and powerful manufacturers.

The dealerships — one located south of Boston in Plymouth and the other on Cape Cod — claimed in their federal lawsuit that Volvo pays them far less for work under a Volvo-issued prepaid maintenance plan than the manufacturer pays for warranty repairs.

Under the state's Motor Vehicle Dealer Act, Volvo is required to reimburse the dealers at their retail rate...

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