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

[joewilk45]

I think Scout wins its court battle there will be states that will disallow DTC but scout can write all orders in a friendly state and have service centers throughout the country they don't need a license to open a service center that repairs EV's. You can accept delivery at a service center or SC or maybe they go the Carvana route and deliver to your home and pick up your trade in hand you your paperwork and go over your new scout with tech all paperwork was done previously online

 

[Donnie]

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.

Yeah that’s odd because I’m buying my second Tesla from Florida tomorrow lol I can’t buy directly in my home state.

 

[anthonypape]

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.

Scout is the shell company for VW but it’s pretty easy to see through. And in all 50 states it is against franchise laws for a manufacturer to compete with their franchise dealers. Since Tesla never franchised they would not be competing with any small business owners that they sold a franchise to because they never existed. I think VW will have to sell Scout and have absolutely no affiliation with them, or they could just sell through their existing VW dealers. This would be fine. They can say it’s one price no haggle posted interest rates etc and be no different than the Tesla experience. Kind of like Saturn did. People loved it. In fact they liked it so much they were willing to buy an inferior car. But of course GM killed anything that has a chance of working for them.

 

[joewilk45]

I see them finding a friendly state where they can run all the paperwork through and distribute vehicles to service centers you pay sales tax once you register in your state. They could also go the Carvana route and delivery ver to your home and pick up your trade in temp tags be provided. Delivery driver would be knowledgeable about your vehicle go over inspect sign off and your journey begins

 

[Mr._Bill]

I've never bought a car direct from the manufacturer. My assumption was they only sell new vehicles. They don't operate under the dealer model. I expect them to provide financing, but wasn't expecting them to take my current vehicle in trade.

 

[anthonypape]

I see them finding a friendly state where they can run all the paperwork through and distribute vehicles to service centers you pay sales tax once you register in your state. They could also go the Carvana route and delivery ver to your home and pick up your trade in temp tags be provided. Delivery driver would be knowledgeable about your vehicle go over inspect sign off and your journey begins

There is no friendly state in VW’s situation. There are a few unfriendly states to Tesla which is baffling to me. If the law is simply enforcing a contract between a manufacturer and franchisee, why is Tesla held to that standard when they have no contracts with franchisees?

 

[joewilk45]

Well what happens if SC passes law allowing scout to sell DTC . But I find it hard to believe VW would invest 2 billion dollars without anticipating push back from dealers and what the plan was to market and sell scout's moving forward.

 

[ScoutMagnatta]

I just don't understand why these dealerships care. It's not their company It's a new company. Scout should be able to do anything they want. They have zero to do with VW and Audi. Just because Scout is under the VWG umbrella these dealerships think they have the right to sue? If they want to sue VW and Audi to stop those companies then fine, but SCout Motors should be able to do whatever they want.

 

[joewilk45]

VW owns scout and funded its revival therefore the current dealerships see scout will be a desirable option and want in on the option to sell them

 

[Mr._Bill]

The VW dealers are upset because VW started a new car company that they don't get any involvement with. VW is a major investor, but they setup Scout as a company they don't control. VW could have brought the Scout design in and sold a lot of them. The dealers are upset because they don't get an expanded product line and increased sales. They don't have a comparable product to sell, and will have to sit back and watch Scout be successful selling direct.

A large part of the dealers income comes from the service department. EV's are very low maintenance and don't need regular service like ICE vehicles. It doesn't make sense for the dealers to want any part of this, unless they are able to gouge the consumer during the sales process. Essentially, they are suing for the right to take advantage of you by claiming Scout is controlled by VW and not just a long-term investment.

 

[joewilk45]

Once again this is all irrelevant it's 8 months before factory is completed and then orders and production that's 2 yrs a lot of time for all these variables to play out

 

[anthonypape]

I just don't understand why these dealerships care. It's not their company It's a new company. Scout should be able to do anything they want. They have zero to do with VW and Audi. Just because Scout is under the VWG umbrella these dealerships think they have the right to sue? If they want to sue VW and Audi to stop those companies then fine, but SCout Motors should be able to do whatever they want.

They are upset because they have a signed, binding, contractual agreement that they will never have to compete with the manufacturer. In other words they have a contract stating VW will not do the exact thing that it’s doing. Last I would never underestimate the poor planning and bad decision making at VW. I wish Scout truly was separate

 

[joewilk45]

They had a prenup we're all going to be fine Scout will prevail just like the eagles willl in the Super Bowl

 

[joewilk45]

FYI
https://carbuzz.com/10-reasons-why-the-og-international-scout-was-a-brilliant-car/

 

[LoneWolfo6]

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.​

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Yuppies, probably drive Teslas and get razzed daily for not driving a company car?!

Take it out on the new guy!