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.