Volkswagen Fails to Invalidate Illinois Warranty Repair Law

Volkswagen Group of America Inc. may have to pay more in reimbursements to dealers who complete repairs under warranty as a result of a Monday federal court ruling.

The automaker claimed a 2021 Illinois law calculating how car dealers are reimbursed by automobile manufacturers for the repairs violates due process, equal protection, takings, and commerce clauses of the US and Illinois constitutions.

But US District Court for the Northern District of Illinois Judge John Tharp rejected those arguments, writing VW’s due process claim “failed to overcome the presumption in the State’s favor” that the law is legal. Volkswagen faced a ...