VW dealers may sue to change Scout's direct-to-consumer business plan

[Golfguy]

Let's hope this doesn't change up the direct sales model!! That's one of the most attractive things about these new Scouts in my opinion -- not having to deal with the usual dealer salespeople, price gouging, negotiating, etc.

https://www.carscoops.com/2024/10/v...cout-confirms-direct-to-customer-sales-model/

VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers

The revived brand will handle all sales, production, and servicing of its models and that might rub existing VW dealers the wrong way

Dealerships Prepare for a Legal Battle

Unsurprisingly, this hasn’t gone down well with existing VW dealers. Backed by the National Automobile Dealers Association and the Automotive Trade Association Executives, they’re reportedly gearing up to pursue legal action in an attempt to force Scout to reconsider its direct-to-consumer strategy, Auto News reports.

“Assuming they take this other path, let’s face it, there’s going to be challenges and problems for them virtually everywhere across the country,” said John Devlin, the 2024 chairman of the Automotive Trade Association Executives and CEO of the Pennsylvania Automotive Association. “My counterparts around the country are not just going to roll over.”

Scout’s Independence Gives It Flexibility

The problem for VW dealers is that Scout has been established as an independent company, a move that clears the way for a direct-to-consumer model without conflicting with VW’s franchise dealer network.

“Because of the way the franchise laws are in many states, if this were to be a Volkswagen company, it would be forced to not compete against Volkswagen dealerships,” Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told Auto News. “But as a standalone company, they are working to get around requiring franchise dealers, period, to carry the Scouts.”

Scout Motors is looking to establish a one-to-one relationship with its customers, directly offering reservations, sales, delivery, and servicing. It adds shoppers will know exactly what they’re paying for with “full price transparency,” and says “vehicle purchase transactions will be completed in minutes.”

Interested buyers will be able to see Terra and Traveler models at dedicated retail spaces across the US. Test drives will also be offered at these sites. Scout Workshops are also being established but the firm notes approximately 80% of repair types can be completed outside of a Scout Workshop, “whether in a driveway or while adventuring.”

 

[Scout3]

I am really tired of dealing with auto dealers. They just want to add $10k to the price. This lawfare threat to Scout Motors just drives the wedge deeper. Would be so happy to bypass them.

 

[JesseS]

This won't work, Scout is a stand alone independent company, not affiliated with VW, so the dealers have no say so. Now that Tesla has led the way I think more start ups with go this route.

 

[Treebeard]

Let's hope this doesn't change up the direct sales model!! That's one of the most attractive things about these new Scouts in my opinion -- not having to deal with the usual dealer salespeople, price gouging, negotiating, etc.

https://www.carscoops.com/2024/10/v...cout-confirms-direct-to-customer-sales-model/

VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers

The revived brand will handle all sales, production, and servicing of its models and that might rub existing VW dealers the wrong way

Dealerships Prepare for a Legal Battle

Unsurprisingly, this hasn’t gone down well with existing VW dealers. Backed by the National Automobile Dealers Association and the Automotive Trade Association Executives, they’re reportedly gearing up to pursue legal action in an attempt to force Scout to reconsider its direct-to-consumer strategy, Auto News reports.

“Assuming they take this other path, let’s face it, there’s going to be challenges and problems for them virtually everywhere across the country,” said John Devlin, the 2024 chairman of the Automotive Trade Association Executives and CEO of the Pennsylvania Automotive Association. “My counterparts around the country are not just going to roll over.”

Scout’s Independence Gives It Flexibility

The problem for VW dealers is that Scout has been established as an independent company, a move that clears the way for a direct-to-consumer model without conflicting with VW’s franchise dealer network.

“Because of the way the franchise laws are in many states, if this were to be a Volkswagen company, it would be forced to not compete against Volkswagen dealerships,” Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told Auto News. “But as a standalone company, they are working to get around requiring franchise dealers, period, to carry the Scouts.”

Scout Motors is looking to establish a one-to-one relationship with its customers, directly offering reservations, sales, delivery, and servicing. It adds shoppers will know exactly what they’re paying for with “full price transparency,” and says “vehicle purchase transactions will be completed in minutes.”

Interested buyers will be able to see Terra and Traveler models at dedicated retail spaces across the US. Test drives will also be offered at these sites. Scout Workshops are also being established but the firm notes approximately 80% of repair types can be completed outside of a Scout Workshop, “whether in a driveway or while adventuring.”

Another reason not to order unless a VW dealer will service it. I’m tired of driving to Boston.

 

[MountainAlive]

And so it begins. https://www.thestreet.com/electric-...source=flipboard&utm_content=topic/automotive

 

[SteveG]

I hope they can stay separate from VW dealers. I think sales will be much better the more they can disassociate the brand from VW. .and offer a unique dealer "personality" for the Scout brand.

 

[Rockside]

Zero chance VW dealers win this one. Dealers know their value is diminishing - so they have to fight but it’s useless.

Every OEM would do away with dealers if they could and weren’t bound contractually. VW set this model to compete with Tesla and Rivian.

What will be interesting is to see how Scout works with certain states that do not allow circumventing dealerships with direct-to-consumer. I believe South Carolina has no Tesla or Rivian offices because SC doesn’t allow it. Will SC change since they are building the Scout? I guess so since you’ll be able to take delivery at the factory (like BMW).

 

[mklcolvin]

It amazes me that all of these legacy dealerships are crying that they can't sell EVs, that customers don't want EVs, and that manufacturers should stop forcing EVs onto dealerships. They push politicians to try to stop the EV movement from growing, YET every time a company wants to sell EVs directly to the consumer, they have a fit & try to force the company to sell through their dealerships. It's like having horse & buggy salesmen trying to force ICE car makers to only make horse & buggies - BUT if they are trying to sell cars directly to the public, then they must be sold through the horse & buggy outlets. They are trying to keep their monopoly in horse & buggies, while we want to move on to something better.

 

[atebit]

National Automobile Dealers Association

What’s in a name?

 

[Vintage]

The VW group owns multiple franchise including Porsche and Audi. VW dealers are dreaming, they have zero chance of getting the Scout in their showroom.

 

[Yamapro]

I would walk from my reservation if forced to deal with a local VW dealer. My local dealership has changed names 3 times in the past decade, they are the sole reason I won’t consider buying an Audi for my wife.

 

[surfkiev]

Let's hope this doesn't change up the direct sales model!! That's one of the most attractive things about these new Scouts in my opinion -- not having to deal with the usual dealer salespeople, price gouging, negotiating, etc.

https://www.carscoops.com/2024/10/v...cout-confirms-direct-to-customer-sales-model/

VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers

The revived brand will handle all sales, production, and servicing of its models and that might rub existing VW dealers the wrong way

Dealerships Prepare for a Legal Battle

Unsurprisingly, this hasn’t gone down well with existing VW dealers. Backed by the National Automobile Dealers Association and the Automotive Trade Association Executives, they’re reportedly gearing up to pursue legal action in an attempt to force Scout to reconsider its direct-to-consumer strategy, Auto News reports.

“Assuming they take this other path, let’s face it, there’s going to be challenges and problems for them virtually everywhere across the country,” said John Devlin, the 2024 chairman of the Automotive Trade Association Executives and CEO of the Pennsylvania Automotive Association. “My counterparts around the country are not just going to roll over.”

Scout’s Independence Gives It Flexibility

The problem for VW dealers is that Scout has been established as an independent company, a move that clears the way for a direct-to-consumer model without conflicting with VW’s franchise dealer network.

“Because of the way the franchise laws are in many states, if this were to be a Volkswagen company, it would be forced to not compete against Volkswagen dealerships,” Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told Auto News. “But as a standalone company, they are working to get around requiring franchise dealers, period, to carry the Scouts.”

Scout Motors is looking to establish a one-to-one relationship with its customers, directly offering reservations, sales, delivery, and servicing. It adds shoppers will know exactly what they’re paying for with “full price transparency,” and says “vehicle purchase transactions will be completed in minutes.”

Interested buyers will be able to see Terra and Traveler models at dedicated retail spaces across the US. Test drives will also be offered at these sites. Scout Workshops are also being established but the firm notes approximately 80% of repair types can be completed outside of a Scout Workshop, “whether in a driveway or while adventuring.”

Ha! Good luck with that.