Volvo Prevails Over Dealers in Suit Over Prepaid Service Plans

Volvo USA shook off claims Thursday from two Massachusetts dealerships claiming the carmaker wasn’t paying them enough for services they perform under Volvo’s prepaid car maintenance plans.

The dealers’ sale and service of the plans aren’t franchise requirements so Volvo, and plan administrator Fidelity Warranty Services, aren’t bound by a law governing manufacturers’ franchise obligations to dealers, the US Court of Appeals for the First Circuit said.

The decision affirms the District of Massachusetts’ 2023 grant of summary judgment to Volvo and Fidelity in the case. The dealerships’ complaint said Volvo and Fidelity violated the Massachusetts Motor Vehicle Dealer ...