Dealers in California are protesting Volkswagen Group's plan to sell Scout electric vehicles directly to consumers, arguing that it violates state dealer franchise laws.
Dealers in California, a state known for its progressive approach to electric vehicles, are expressing dissatisfaction with Volkswagen Group's plan to implement a direct-sales model for the newly established Scout brand. Over 50 dealers, including those representing VW Group brands, argue that California dealer franchise laws prevent automakers from competing with their franchisees by using affiliates to directly sell or service vehicles.
They contend that Scout, being considered an affiliate of VW Group, falls under this restriction. The dealers claim that if the direct-sales plan proceeds, it will exclude existing VW Group dealerships—many of which have long requested a pickup truck from the automaker—from the opportunity to sell and service Scout vehicles. While some brands like Polestar (linked to Volvo) operate direct-sales models in California, they integrate some customer service and service through existing dealer networks. A similar approach might have mitigated tensions surrounding VW Group's efforts to establish its own stores for Scout
ELECTRIC VEHICLES DEALER FRANCHISE LAWS CALIFORNIA VW GROUP SCOUT
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