Volkswagen Group Australia says it will proceed with the process of appointing new management to the Werribee dealership after today's hearing in the Supreme Court of Victoria.
VGA alleged misconduct on the part of Werribee Volkswagen owner Mr Bo (Nick) Zhao in relation to the sale of cars to a third party in another state, which proceeded to on sell them.
VGA last month sought to terminate the franchise, but Werribee Volkswagen obtained an injunction (without notice to VGA) which placed a hold on the termination.
"VGA does not consider Mr Zhou a fit person to hold our franchise," said Mr Bartsch, Managing Director of VGA.
Information obtained by VGA since the injunction was given by the court confirmed that termination of the franchise was justified and that there was no basis for the injunction.
As well as dissolving the injunction, dismissing the proceedings and ordering Mr Zhao personally to pay VGA's costs, the court will now ask the police, ASIC and Consumer Affairs Victoria to consider taking action against Mr Zhao resulting from his conduct in these court proceedings, including the sworn evidence that he gave to the court.
"VGA will work to ensure a smooth transition to new ownership and to minimise inconvenience to our customers," Mr Bartsch said.