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

[lumplegs]

Canada has never raised any kind of bs with this business model which is nice.

Yes even the VW ID buzz was direct to customer rather than dealer

 

[joewilk45]

Difference is VW has an established network of dealers promised their cars and services from the mother ship. Tesla and Rivian were brand new brands not spun off of other brands. Scout was an established brand. Reincarnated by VW who has franchise agreements with its dealerships for new offerings and technology in its pipeline. I am sure this will push scout not to use VW hardware as I would think to show Their independence they don't want to intergrate VW hardware making the dealership case more relevant.

 

[timmyhil]

Difference is VW has an established network of dealers promised their cars and services from the mother ship. Tesla and Rivian were brand new brands not spun off of other brands. Scout was an established brand. Reincarnated by VW who has franchise agreements with its dealerships for new offerings and technology in its pipeline. I am sure this will push scout not to use VW hardware as I would think to show Their independence they don't want to intergrate VW hardware making the dealership case more relevant.

Well as on what Jamie said about that they have the VW parts bin but they cant use it since it would never work since the body on frame construction. So they really are independent.

And to be perfectly honest any good law firm that is put together could easily fight this and win. Which Scout has. They recently expanded their “law firm” just last year.

 

[joewilk45]

Chrysler / Dodge ( Rivian , Scout , VW, ) As Stanlantis owns various brands and they sell multiple brands under the same roofs. This as well as BMW and Mini and now Honda merging with Nissan are going to set presidents for pending court challenges. But once again Scout can set base prices and ship completed vehicles leaving no dealer accessories they could be force to only make destination charges. They can change the franchise rules but not the franchise. And VW doesn't want to open a can of worms in the EU meaning they are suppose to be representing the best interest of the EU unions and that's selling the most units at a profitable rate. So why does EU union care their pension dollars are tied to VW's performance theirs a lot to consider.

 

[joewilk45]

But once again let's turn the TV off and go play some golf and next year we'll be picking colors and options and hopefully Scout is asking us for our shirt sizes Santa Clause is coming to town !!!

 

[joewilk45]

I am sure when VW came up with re launching of scout and how they were going to market the brand. They / Lawyers drew up a good plan to combat the dealership suit so let's see who wins Morgan and Morgan or Demand Rand will

 

[timmyhil]

I am sure when VW came up with re launching of scout and how they were going to market the brand. They / Lawyers drew up a good plan to combat the dealership suit so let's see who wins Morgan and Morgan or Demand Rand will

I agree they had it all planned they knew this would happen and it would have to be fought off.

 

[joewilk45]

Keep in mind I don't think VW's stance is to say FU to their current dealership network they might even give them the option to be a distributor for scout and a service center operator but on a direct consumer model. Let's worry about what we can control and hope those who do have control apply commonsense

 

[timmyhil]

Keep in mind I don't think VW's stance is to say FU to their current dealership network they might even give them the option to be a distributor for scout and a service center operator but on a direct consumer model. Let's worry about what we can control and hope those who do have control apply commonsense

I could see it being a service center since Scout and obviously VW group wants them to be a D2C operation as an investor. Similar to what BMW and MINI did before 2021 when BMW said we can also start to sell MINIs Under the same building. But the only thing is that BMW has very strict regulations and one of them is that a BMW dealership can only have 3-5 MINI on the lot if I remember correctly.

 

[joewilk45]

The great thing about all this is it seems there's a good team in place. And they will figure it all out and once they do we will be like 5 yr olds on Christmas Eve waiting for our new truck. Anything worthwhile is worth waiting for just ask everyone who's married twice. So I hear im a 42 yr veteran of one.

 

[Chuckles]

I could see it being a service center since Scout and obviously VW group wants them to be a D2C operation as an investor. Similar to what BMW and MINI did before 2021 when BMW said we can also start to sell MINIs Under the same building. But the only thing is that BMW has very strict regulations and one of them is that a BMW dealership can only have 3-5 MINI on the lot if I remember correctly.

I would be okay with getting a Scout serviced at Audi or VW if I could still buy it online. There are multiple dealers within 50 miles of me. The Scout service/lifestyle centers probably won't be near me until year 2 or 3 of sales.

 

[joewilk45]

If I own any business I want foot traffic anyway I can get it and this is an area I will pursue. Look at it this way your a VW dealership things haven't been going well lately. Then your corporate office is coming out with a new brand called Scout and telling you your out you can only sell the ugly ducklings. And if you're good we might let you upgrade your service centers to service our new brand called Scout. You might be a little bit upset with the brand. So I would think VW has a plan to keep all groups informed of the future and what it holds for them. And maybe that's see you in court but let's hope not.

 

[timmyhil]

i think in court VW(INVESTOR) Scout will tell the dealerships that they can’t the vehicles since it’s classified and registered as an independent American Brand, but VW dealers can service them to a certain extent let’s say (Brakes, possibly an oil change for the harvester but who knows since Scout seems to be developing their own engine, and tires) but that’s it. but let’s hope it’s that Scout wins completely and can sell direct to consume.

that way dealerships don’t feel left out #p***ies

 

[joewilk45]

We just got engaged the wedding is in two years

 

[timmyhil]

We just got engaged the wedding is in two years

That’s legit what it feels like.