<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Former VW dealer seeks compensation
</TR><!-- headline one : end --><TR>Group Exklusiv owner demands 8-figure sum from German carmaker </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan, Senior Correspondent
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When VW Financial Services Singapore issued Mr Kwee a bankruptcy notice - after he missed a deadline to settle outstanding loans worth about $300,000 on some 30 cars - he paid up in cash. But all in $2 bills that filled two suitcases. -- PHOTO: KEVIN KWEE
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->BUSINESSMAN Peter Kwee, who relinquished his Volkswagen dealership here more than a year ago, is seeking an eight-figure sum in compensation from the German carmaker.
Mr Kwee, through his lawyer Lok Vi Ming of Rodyk & Davidson, has sent letters of demand to both Volkswagen Group Singapore and its parent group Volkswagen Ag.
The Straits Times understands that the claims revolve around disputes arising from the bitter separation between the two parties.
Mr Kwee's Group Exklusiv started selling Volkswagens in 1999, operating out of two facilities in the Leng Kee motor belt. Along the way, it constructed a $25 million purpose-built showroom in Alexandra Road to house the brand.
In 2005, just months after Group Exklusiv moved into the new facility - which Mr Kwee described as a long-term investment to build the VW brand - Volkswagen dropped the bombshell.
It informed Mr Kwee that it was taking over the distributorship of its own cars. Group Exklusiv was relegated to the status of a dealer. Dealers earn far thinner margins than distributors.
The soured relationship worsened over the next two years. Early last year, VW took over the entire business, severing its relationship with Mr Kwee entirely. Both sides agreed on a compensation sum, but VW did not pay up immediately.
The German company first said the settlement was 'complex'. Later, it said Mr Kwee did not provide his bank account details. Several weeks passed.
When it finally got to sending a cheque, Mr Kwee rejected it, saying the payment had well breached an agreed deadline.
Asked why he has taken such a long time to pursue the matter again, Mr Kwee said: 'I've been busy, and this is not top of my priorities.'
He revealed, however, that he was reminded of the unfinished business when VW Financial Services Singapore - a vehicle-financing arm of Volkswagen - issued him a bankruptcy notice last month.
It was after Mr Kwee missed a deadline to settle outstanding loans worth about $300,000 on some 30 cars. 'It just slipped my mind,'' Mr Kwee said, adding that when he asked for an extension, the finance company refused.
Peeved that a company that he once owned 49 per cent of, 'and which we helped build', was treating him this way, he paid up - in cash. All in $2 bills that filled two suitcases.
The episode revived his unsettled fight with Volkswagen Group Singapore.
Asked if the current financial crisis had affected his cashflow and therefore prompted his action, Mr Kwee whipped out his bank statements to show that he is still more than adequately liquid.
When contacted, Volkswagen Group Singapore managing director Olaf Duebel said: 'Our stand remains unchanged. We had an amicable agreement with Mr Kwee, and we are willing to provide him the sum which we agreed upon.''
Asked why it took so long for VW to send the cheque, Mr Duebel said 'it depends on what you mean by long'.
Lawyers said Mr Kwee faced a tough fight if he should take the case to court because the case would have to be heard in Germany.
'Germany is Volkswagen's home ground,'' one said. 'And it would definitely cost a lot more to fight in Germany than here.'
Mr Kwee is undeterred. 'We've already got a German lawyer,'' he said. [email protected]
</TR><!-- headline one : end --><TR>Group Exklusiv owner demands 8-figure sum from German carmaker </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan, Senior Correspondent
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
When VW Financial Services Singapore issued Mr Kwee a bankruptcy notice - after he missed a deadline to settle outstanding loans worth about $300,000 on some 30 cars - he paid up in cash. But all in $2 bills that filled two suitcases. -- PHOTO: KEVIN KWEE
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->BUSINESSMAN Peter Kwee, who relinquished his Volkswagen dealership here more than a year ago, is seeking an eight-figure sum in compensation from the German carmaker.
Mr Kwee, through his lawyer Lok Vi Ming of Rodyk & Davidson, has sent letters of demand to both Volkswagen Group Singapore and its parent group Volkswagen Ag.
The Straits Times understands that the claims revolve around disputes arising from the bitter separation between the two parties.
Mr Kwee's Group Exklusiv started selling Volkswagens in 1999, operating out of two facilities in the Leng Kee motor belt. Along the way, it constructed a $25 million purpose-built showroom in Alexandra Road to house the brand.
In 2005, just months after Group Exklusiv moved into the new facility - which Mr Kwee described as a long-term investment to build the VW brand - Volkswagen dropped the bombshell.
It informed Mr Kwee that it was taking over the distributorship of its own cars. Group Exklusiv was relegated to the status of a dealer. Dealers earn far thinner margins than distributors.
The soured relationship worsened over the next two years. Early last year, VW took over the entire business, severing its relationship with Mr Kwee entirely. Both sides agreed on a compensation sum, but VW did not pay up immediately.
The German company first said the settlement was 'complex'. Later, it said Mr Kwee did not provide his bank account details. Several weeks passed.
When it finally got to sending a cheque, Mr Kwee rejected it, saying the payment had well breached an agreed deadline.
Asked why he has taken such a long time to pursue the matter again, Mr Kwee said: 'I've been busy, and this is not top of my priorities.'
He revealed, however, that he was reminded of the unfinished business when VW Financial Services Singapore - a vehicle-financing arm of Volkswagen - issued him a bankruptcy notice last month.
It was after Mr Kwee missed a deadline to settle outstanding loans worth about $300,000 on some 30 cars. 'It just slipped my mind,'' Mr Kwee said, adding that when he asked for an extension, the finance company refused.
Peeved that a company that he once owned 49 per cent of, 'and which we helped build', was treating him this way, he paid up - in cash. All in $2 bills that filled two suitcases.
The episode revived his unsettled fight with Volkswagen Group Singapore.
Asked if the current financial crisis had affected his cashflow and therefore prompted his action, Mr Kwee whipped out his bank statements to show that he is still more than adequately liquid.
When contacted, Volkswagen Group Singapore managing director Olaf Duebel said: 'Our stand remains unchanged. We had an amicable agreement with Mr Kwee, and we are willing to provide him the sum which we agreed upon.''
Asked why it took so long for VW to send the cheque, Mr Duebel said 'it depends on what you mean by long'.
Lawyers said Mr Kwee faced a tough fight if he should take the case to court because the case would have to be heard in Germany.
'Germany is Volkswagen's home ground,'' one said. 'And it would definitely cost a lot more to fight in Germany than here.'
Mr Kwee is undeterred. 'We've already got a German lawyer,'' he said. [email protected]
