Florida VW/Audi dealers file lawsuit to block Scout Motors' direct sales to consumers

[DaveM]

Another suit filed. This time by Florida VW / Audi dealerships.

https://www.autonews.com/volkswagen/scout/an-florida-dealers-file-suit-scout/

The lawsuit, believed to be the first formal legal challenge on behalf of VW and Audi dealers over Scout’s plans to sell straight to consumers, also challenges the brand’s independence from parent Volkswagen Group and claims it is not properly licensed as a manufacturer in the state.​

​

 

[maynard]

unreal... they need to wake up - the world is changing...

 

[MadGreek]

Another suit filed. This time by Florida VW / Audi dealerships.

https://www.autonews.com/volkswagen/scout/an-florida-dealers-file-suit-scout/

The lawsuit, believed to be the first formal legal challenge on behalf of VW and Audi dealers over Scout’s plans to sell straight to consumers, also challenges the brand’s independence from parent Volkswagen Group and claims it is not properly licensed as a manufacturer in the state.​

​

Got me wondering how many of these lawsuits we'll see from how many states. Looked up the list of states that don't allow (or have limits on) direct to customer vehicle sales:

U.S. states with bans on direct sales models

• Alabama (includes service centers)
• Arkansas
• Connecticut (leasing is allowed; tribal land loophole)
• Iowa
• Kansas (includes storefronts)
• Kentucky
• Louisiana (Tesla allowed through special license, “service center” model)
• Nebraska
• New Mexico (includes service centers; tribal land loophole)
• Oklahoma
• South Carolina (includes service centers)
• Texas (Tesla sells through online loophole, “service center” model)
• West Virginia (includes storefronts)
• Wisconsin

U.S. states with store limits on direct sales models

• Illinois (limited to 13)
• Maryland (limited to 4)
• Mississippi (limited to 1)
• New Jersey (limited to 4)
• New York (limited to 5)
• North Carolina (limited to 6)
• Ohio (limited to 3)
• Pennsylvania (limited to 5)
• Virginia (limited to 5)

So Florida isn't even on this list.

 

[NukeDukem]

You can bet the automobile dealership lobbies are all over their state governors.

 

[JesseS]

If these money mongers prevail I will be out, I never want to ever deal with a dealer again, Thank goodness California allows DTC sales.

 

[ScoutMagnatta]

Stealerships are ridiculous.

 

[timmyhil]

They will shut up real quick like california once they get the letter from Scout.

 

[Macallan 18]

They will shut up real quick like california once they get the letter from Scout.

Yea I hope this gets quashed real quick too but this one's different than the California dealers. This is an actual lawsuit filed in Florida. The California dealers just sent a demand letter to Scout. So this one will take more than just a strongly worded letter from Scout general counsel, it'll require actual legal defense action by Scout's lawyers.

 

[JesseS]

Yea I hope this gets quashed real quick too but this one's different than the California dealers. This is an actual lawsuit filed in Florida. The California dealers just sent a demand letter to Scout. So this one will take more than just a strongly worded letter from Scout general counsel, it'll require actual legal defense action by Scout's lawyers.

I am sure they have prepared for this....

 

[joewilk45]

We have so many episodes of how the Scout was born so before we order we will know where were picking it up from

 

[Dive Bar Casanova]

If these money mongers prevail I will be out, I never want to ever deal with a dealer again, Thank goodness California allows DTC sales.

Calif VW Dealers are Suing anyway.
Only the lawyers will win.
We'd love factory delivery.

 

[joewilk45]

VW can always sell Scout to a shell company to alleviate dealers lawsuit if it gets to that. In meantime let's concentrate on building a great truck and hopefully we get some order sheets in the near future and a ride to follow.

 

[Dive Bar Casanova]

Eliminate the middle man is fine IMHO.

We had 5 "updates" aka recalls on our EV6.

Unless we paid for a tire rotation and a cabin filter replacement the dealer wouldn't book us a service Appt.
I did all that already. Not paying for it.

Started getting follow up enquiries on the recall request from Kia urging us to get it done. 6 attempts to get an appointment, 6 times shut-out. Online, phone and in person.

We had a Disneyland day scheduled and made an appointment with the local Kia Dealer out there.
The Kia service writer was the same rep that once worked for Toyota when we had a Rav 4 elect while participating in the Green Power Program.
.
Toyota folded that program and he went to work for Kia.
A fantastic person. Glad to serve us, appreciated our business.

Not only did the dealer do all the updates, we got a detail, cooler, insulated cups, and a charge to 80%, plus they replaced one of the tires that was bad,,, all free and gave us a loaner to take to Disneyland.

Finding a good dealer is a coin toss.
50% of vehicle ownership drama will be eliminated when it's direct sales.

 

[joewilk45]

Dealers make their most profit on service

 

[Latrant]

Got me wondering how many of these lawsuits we'll see from how many states. Looked up the list of states that don't allow (or have limits on) direct to customer vehicle sales:

U.S. states with bans on direct sales models

• Alabama (includes service centers)
• Arkansas
• Connecticut (leasing is allowed; tribal land loophole)
• Iowa
• Kansas (includes storefronts)
• Kentucky
• Louisiana (Tesla allowed through special license, “service center” model)
• Nebraska
• New Mexico (includes service centers; tribal land loophole)
• Oklahoma
• South Carolina (includes service centers)
• Texas (Tesla sells through online loophole, “service center” model)
• West Virginia (includes storefronts)
• Wisconsin

U.S. states with store limits on direct sales models

• Illinois (limited to 13)
• Maryland (limited to 4)
• Mississippi (limited to 1)
• New Jersey (limited to 4)
• New York (limited to 5)
• North Carolina (limited to 6)
• Ohio (limited to 3)
• Pennsylvania (limited to 5)
• Virginia (limited to 5)

So Florida isn't even on this list.

Those 'limited' stores are also limited in what they can provide, meaning they are for delivery of your direct to consumer bought vehicle and service.

I suppose that's good enough, maybe.

Can't test drive or even sit in a prospective model.

Tesla is exempt from this since they began a decade ago selling cars in my state of Ohio.