California dealers demand Scout / VW stop direct-to-consumer sales with cease and desist letter

[Chuckles]

The fact that it was only signed this year makes me think Tesla had their fingers in it. Also this VW dealers are going to be impacted storyline is getting tired. They don’t sell Bentley, Audi, Porsche, or Lamborghini through VW dealers why is this different.

It's the direct to consumer part that's the issue. All those other brands have their own dealerships and sales people. Dealers want to keep being the middleman. If Scout built traditional car dealerships this wouldn't be an issue.

 

[timmyhil]

Like what’s being discussed on the official Scout Community Forum, Scout is prepared for this they had to know this would happen, Their lawyers are probably already preparing to take action against California.

The group behind Scout is a very strong and prepared group.

 

[joewilk45]

Listen it's California VW dealerships bringing this most likely it's a more favorable court and other state VW dealerships will jump onto a class action suit. If they can prove VW used EU union profit funds to fund scout it could show involvement. But you stated Scout was waiting for this suit. I would think so to but then I wonder why scout didnt work out with South Carolina first to allow direct consumer model beforehand. Before building a multi billion manufacturing facilities. I know they got tax breaks but one would think that would have be approved beforehand. So we need to see who the Scot Boras is within Scout and get this thing put to bed.

 

[timmyhil]

Listen it's California VW dealerships bringing this most likely it's a more favorable court and other state VW dealerships will jump onto a class action suit. If they can prove VW used EU union profit funds to fund scout it could show involvement. But you stated Scout was waiting for this suit. I would think so to but then I wonder why scout didnt work out with South Carolina first to allow direct consumer model beforehand. Before building a multi billion manufacturing facilities. I know they got tax breaks but one would think that would have be approved beforehand. So we need to see who the Scot Boras is within Scout and get this thing put to bed.

They already have worked a deal out with SC. It was in the agreement when making the production facility in SC.

 

[joewilk45]

What I read was SC has yet to approve direct to consumer protection to scout

 

[timmyhil]

What I read was SC has yet to approve direct to consumer protection to scout

Nvm lol. I could have sworn I read that they had signed a deal. But I guess it was about that Lawyers of Scout are hoping to change the law in SC.

 

[joewilk45]

https://www.postandcourier.com/poli...cle_dba34266-bd4c-11ef-b5b5-df6d57831e08.html

 

[timmyhil]

This entire thing is so F*cked. If they go after Scout, might as well attack Rivian and Tesla. It should be fair game. Non of this bullshit. If Scout loses and I have to go to a dealership my reservation will get canceled.

 

[encathal]

According to the article:

California law covering new-car sales and marketing was amended to permit competition “so long as the vehicle is being sold using new or existing franchisees to sell and service those vehicles.” Tesla, which has operated without franchisees since it was founded, is exempt from the amended law.​

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The amendment, approved by the California’s legislature and signed into law, took affect Jan. 1 2024​

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Don't know why / how Tesla is exempt from the law.

I think the dealers are claiming the Scout Motors is a part of VW. Telsa does not deal with this since they have no dealers in CA. They have MFG maintenance locations. It really comes down to "Is Scout Motors a division or VW".

 

[timmyhil]

I think the dealers are claiming the Scout Motors is a part of VW. Telsa does not deal with this since they have no dealers in CA. They have MFG maintenance locations. It really comes down to "Is Scout Motors a division or VW".

I have proof they aren’t and so does @joewilk45 since I dm’ed him exactly What Jamie told me when I asked Last week. I’ll quote it here for everyone

”Scout is set up as an independent U.S. company. VW is our biggest investor. Like any investor they ask how we are spending the money and like to see progress on our end. We have access to the Volkswagen Group parts bin, but we are building this on a completely new body-on-frame platform.”

its so clear that scout is a separate company.

 

[joewilk45]

You won't have to but you and me before we stuck a shovel in ground this be worked out beforehand. So the leaders of Scout need to address it before launch. To me it's simple have their design team draw up plans to mimic their current proposed experience centers at 20 million a clip or we buy you out. If it comes to that. And set pre sale limits. Last time I looked VW has one vehicle the Atlas I don't see many dealers ponying up 20 million but we are all at the poker table me personally im all in.

 

[JungGravy]

https://www.autonews.com/volkswagen/scout/an-california-dealer-association-scout-letter/

December 23, 2024

The Calfornia New Car Dealers Association has demanded that Scout Motors / VW Group stop taking deposits for the Scout Traveler and Terra by claiming that it violates amended state law that prohibits direct vehicle sales to consumers.

On Dec. 20 the association sent a letter to the head lawyers at Scout Motors and VW Group that said the two companies' plan to sell Scout vehicles direct to consumers "wrongfully cuts new and existing VW dealers out of an opportunity" and directly violates a section of California's law covering new-vehicle sales.

Updated with the cease and desist letter from the Calfornia New Car Dealers Association (CNCDA) -- cease-and-desist letter:

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orrrrrrrrr... they could focus on making the best vehicle; one that people really desire; at a good value​

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instead of crying about how customers are reached​

 

[Mr._Bill]

Yeah, it's just a tantrum cause they're not going to get what they want. The vehicles are not being sold, yet, so they can't get the government or courts involved. All that's being sold is a place in line for the potential opportunity to purchase a vehicle in the future.

 

[joewilk45]

What's baffling to me is scout didn't have and agreement in hand to sell directly to consumers in South Carolina before they broke ground Im sure Tennessee or Georgia would have matched SC offers. Now they could have to ship cars out of state for delivery if not approved If i'm spending 2 billion and creating 4000 jobs I need hugs and don't want to hear can't !!!!

 

[timmyhil]

Yeah, it's just a tantrum cause they're not going to get what they want. The vehicles are not being sold, yet, so they can't get the government or courts involved. All that's being sold is a place in line for the potential opportunity to purchase a vehicle in the future.

I don’t know. This is classified under an antitrust law of business stifling. California dealerships are stifling Scout by not allowing them to sell D2C but allowing Tesla and Rivian to. So the Court may rule in Scouts favor.

If Scouts lawyers are smart they would bring this up. But as on what’s being speculated is that Scout has had a feeling this would happen and they already have plans drawn for legal cases enfolding this exact manner