Scout Warns VW Dealers Fighting Direct Sales That It’s Not Playing Around

[Logan]

One of the BEST shows EVER!

 

[Sisko99]

I know you just joined. Did you happen to read the letter above at start of thread? It pretty much says this. There is also a thread called something like SC freedom act-posted by another SM staff member that provides some insight to your point. These would be good if you’re into the legal battle ensuing. General consensus on the forum is dealers can suck it (putting it mildly). If you search recent posts it may be quick to find as the threads are fairly recent. Enjoy!

I did search.....and there were a lot of different threads, so I had to pick one. Did read the letter.....and it's written by SM's legal group. I also found the CNDNA letter that started this. I didn't see another letter from VW Group.....but I do think they could end CNDNA's argument that SM is part of VW Group by confirming what SM is stating. I just think this could be ended before it becomes a huge thing is all.....because it seems like CNDNA wants to push things into court. I don't care if the dealers suck it or not....I just dislike stupid, baseless lawsuits. SM shouldn't have to defend themselves against it.

I'm glad that SC is working on the legislation to protect DTC operations....given where the factory is being constructed, that only makes sense. But that won't stop the California people.

 

[J Alynn]

One of the BEST shows EVER!

I did search.....and there were a lot of different threads, so I had to pick one. Did read the letter.....and it's written by SM's legal group. I also found the CNDNA letter that started this. I didn't see another letter from VW Group.....but I do think they could end CNDNA's argument that SM is part of VW Group by confirming what SM is stating. I just think this could be ended before it becomes a huge thing is all.....because it seems like CNDNA wants to push things into court. I don't care if the dealers suck it or not....I just dislike stupid, baseless lawsuits. SM shouldn't have to defend themselves against it.

I'm glad that SC is working on the legislation to protect DTC operations....given where the factory is being constructed, that only makes sense. But that won't stop the California people.

Completely agree but dealers , after years of griping they don’t want to sell EV’s now want to fight to get it because they see the legitimacy of the SM products. SM has said from day one that they aren’t VW but being under VWAG allows the dealer associations to poor money into a pointless lawsuit. We’ve also comment that with all the brands under VWAG it’s funny that VW dealers think they should get it

 

[chucchinchilla]

I keep thinking about this line in the letter..

..if Scout plans to never include VW dealers in it's operations then what's the point of bringing this up?

 

[J Alynn]

I keep thinking about this line in the letter..

View attachment 4837

..if Scout plans to never include VW dealers in it's operations then what's the point of bringing this up?

Because VWAG also has Audi, and the other high ends under their umbrella so maybe they are implying it will go to one of them. Also heard SEAT is potentially bringing vehicles to US so that would allow a connection since they don’t have established dealerships in the U.S. ?

 

[Sisko99]

I keep thinking about this line in the letter..

View attachment 4837

..if Scout plans to never include VW dealers in it's operations then what's the point of bringing this up?

I thought I remembered reading somewhere that the plan was for Scouts to be serviced at VW Dealerships. Maybe I'm misremembering that....or that was never official. But if that was part of the plan.....then the reason for bringing it up is "If you fight us here.....you won't get ANYTHING. If you shut up and go away, you'll may get service revenue out of this." The sad thing is that dealerships generally make more money from service than they do from sales....so you'd think they'd be trying to make nice to get the service side and build up the relationship.

I agree that it might be nicer to get service at an Audi dealer.....but that will raise the prices AND if the NADA goes forward, any connection to any dealer network will weaken their position....as was mentioned above.

I also know that Scout has announced they will start building stores like Tesla and Rivian did.....but that's going to take a while and those 16 starter locations will leave a lot of people in the cold till they build more. Having an agreement with an existing dealer network helps fill the void and gives owners more options, but I don't blame Scout one iota if they walk away from any of that because the NADA is trying to screw them.

 

[Logan]

I thought I remembered reading somewhere that the plan was for Scouts to be serviced at VW Dealerships. Maybe I'm misremembering that....or that was never official. But if that was part of the plan.....then the reason for bringing it up is "If you fight us here.....you won't get ANYTHING. If you shut up and go away, you'll may get service revenue out of this." The sad thing is that dealerships generally make more money from service than they do from sales....so you'd think they'd be trying to make nice to get the service side and build up the relationship.

I agree that it might be nicer to get service at an Audi dealer.....but that will raise the prices AND if the NADA goes forward, any connection to any dealer network will weaken their position....as was mentioned above.

Afaik they don't plan on doing anything at a VW dealership.

They're talking about releasing their own service centers/etc afaik? Perhaps I misunderstood that though?

 

[Sisko99]

Afaik they don't plan on doing anything at a VW dealership.

They're talking about releasing their own service centers/etc afaik? Perhaps I misunderstood that though?

Perhaps that was an assumption.....and you are right, they are going to build their own infrastructure. But plugging into an existing network provides you a stop gap till you can get that infrastructure in place (which is going to take a while) AND gives owners more options in case they need it.

I know I'd choose a SM store over a VW dealer if I had the option.....but if I'm passing through East Egypt on my way somewhere and have a problem, I'll be far more likely to find a VW dealer than a SM store for quite a while.

But even if they were considering it....that plan is likely DOA now. At least Blythewood isn't THAT far away from me.

 

[codythacker]

Afaik they don't plan on doing anything at a VW dealership.

They're talking about releasing their own service centers/etc afaik? Perhaps I misunderstood that though?

This is correct. Scout Motors is an independent OEM and we're building a proprietary platform and vehicle that're unrelated to any VW product. We will deploy a network of Scout Motors owned sales and service locations. The service locations will have all of the equipment, special tools, and trained technicians that are specifically needed to maintain and repair Scout vehicles.

Asking VW to service Scout vehicles is no different than asking Toyota, Chevy, JLR, Ford, and the like to service Scout vehicles. There would be enormous operational complexities, erosion of our customer promise to establish one-to-one relationships and seamless experiences, and contract issues (dealer agreements require exclusive brand operations).

Lastly, the state franchise statutes passed at the behest of dealers create many complexities, difficulties, and expenses around service contractor agreements. Unfortunately, these burdensome regulations limit the options for creativity and optimization that exist in other industries.

 

[Logan]

This is correct. Scout Motors is an independent OEM and we're building a proprietary platform and vehicle that're unrelated to any VW product. We will deploy a network of Scout Motors owned sales and service locations. The service locations will have all of the equipment, special tools, and trained technicians that are specifically needed to maintain and repair Scout vehicles.

Asking VW to service Scout vehicles is no different than asking Toyota, Chevy, JLR, Ford, and the like to service Scout vehicles. There would be enormous operational complexities, erosion of our customer promise to establish one-to-one relationships and seamless experiences, and contract issues (dealer agreements require exclusive brand operations).

Lastly, the state franchise statutes passed at the behest of dealers create many complexities, difficulties, and expenses around service contractor agreements. Unfortunately, these burdensome regulations limit the options for creativity and optimization that exist in other industries.

Thank you so much for clarifying!

I can't tell you how much it helps to have you, Jamie, and others from Scout weighing in with "official statements of truth" in this. We understand you can't give all the information we want yet, but thank you for helping clear things up where/when you can. Its greatly appreciated.

 

[CarTechGeek]

I keep thinking about this line in the letter..

View attachment 4837

..if Scout plans to never include VW dealers in it's operations then what's the point of bringing this up?

I assume the obvious. That they won't cave to threats or intimidation.

 

[Bodie]

Because VWAG also has Audi, and the other high ends under their umbrella so maybe they are implying it will go to one of them. Also heard SEAT is potentially bringing vehicles to US so that would allow a connection since they don’t have established dealerships in the U.S. ?

I think it's this. As in, We believe we'll win this suit but if we don't, we sure as hell won't be putting them in VW show rooms. They could even put them into Navistar dealers (which just changed its name back to International ICYMI). Then you could buy an International Scout like the good ole days.

 

[jss4uva]

I must say that this would probably affect my decision to move forward with the purchase if I am forced to use a dealership. The main reason why I didn't move forward with my preorder Ford Bronco was when the dealership called for me to come in and pick the options they added a caveat of "BTW these are seeing an average markup of $15k above the MSRP so be prepared for that". That is a straight up dealership move, and if it were to happen with the Scout then unfortunately the brand would be dead to me much like Ford is dead to me now. The problem is that a manufacturer has no legal standing for forcing their dealerships to not mark up vehicles due to all of the laws protecting dealerships in every state.

 

[J Alynn]

I must say that this would probably affect my decision to move forward with the purchase if I am forced to use a dealership. The main reason why I didn't move forward with my preorder Ford Bronco was when the dealership called for me to come in and pick the options they added a caveat of "BTW these are seeing an average markup of $15k above the MSRP so be prepared for that". That is a straight up dealership move, and if it were to happen with the Scout then unfortunately the brand would be dead to me much like Ford is dead to me now. The problem is that a manufacturer has no legal standing for forcing their dealerships to not mark up vehicles due to all of the laws protecting dealerships in every state.

Yes. And it sucks, but just like the Bronco there will be idiots that would pay $15K more for privilege to have it first because they have excess $$$
As I’ve said before, heaven forbid it would go to dealers they should set allocations very low and only release more when the buyer satisfaction survey comes back to SM as an 80% or higher favorable response. That would force dealers to do WAY better AND then smooch butt to get the survey filled higher. If they maintain a 95% or higher then they gain allocation quantity

 

[rfk]

I wonder if VW might "gain access" for SM to Rivian service centers via JV?

"Volkswagen Group and Rivian Automotive launched their joint venture on Nov. 13, creating a new company called “Rivian and VW Group Technology.” The new company will focus on developing a electrical/electronic architecture and software for electric vehicles that each automaker will utilize... Rivian now expects to get a injunction of cash, while Volkswagen Group gains access to key technology."

Rivian - Electric Adventure Vehicles

Discover Rivian's long-range electric vehicles, designed for adventure. Explore our innovative EV cars and join the movement towards a sustainable future.

rivian.com

 

[pwrofgrayskull]

Scout Warns VW Dealers Fighting Direct Sales That It’s Not Playing Around

Scout Warns VW Dealers Fighting Direct Sales That It's Not Playing Around

The EV brand says it won't tolerate threats or intimidation as VW dealers try to block its plan to sell trucks directly to consumers.

www.thedrive.com

View attachment 4797

I somehow missed this response from Scout Motors’ General Counsel - thanks for posting it! It’s great to see.