Extra, Extra....Read All About It!

[J Alynn]

Does this mean I can finally buy a Lamborghini from a VW dealership?

In fact you can. Ironically I just ordered a matching set on Saturday. They told me nobody cares about brands anymore-it’s the commissions that matter so why should I drive 58 miles to my nearest Lambo dealer when the VE folks 5 minutes from my office can screw me with less knowledge and service!

 

[oldgeeksguide]

California New Car Dealers Association sues Scout and VW Group over direct sales (April 22, 2025)

California New Car Dealers Association files lawsuit against Scout, VW Group over direct sales

The lawsuit is the latest development between one of the nation’s most powerful and influential dealer associations and Scout.

www.autonews.com

The lawsuit says Scout’s direct-to-consumer model violates a California law that was amended and took effect Jan. 1, 2024. The dealer association considers Scout, wholly owned by Volkswagen AG, to be an affiliate brand of VW. The amended law requires affiliated brands to use franchises to sell and service vehicles, the lawsuit says.

“Thus, Scout Motors could sell its vehicles in California as long as it used new or existing VW-affiliated franchisees to sell those vehicles,” it says.

VW dealers in California are “deprived of the opportunity to sell highly desirable Scout Motors vehicles,” the lawsuit says.

“Volkswagen can’t pick and choose which vehicles to sell on its own or through its franchised dealer network, reserving the most profitable or desirable vehicles for itself,” California New Car Dealers Association President Brian Maas said in an April 22 statement. “Illegal competition will harm not only dealers but also the communities and car buyers that they serve"

Anything a Californian can do to help?

 

[THil08]

I need @codythacker to confirm if it’s real or fake, because these articles have came out a few times and were mostly all fake.

 

[TigerEyeJazz]

https://carbuzz.com/rendering-slate-electric-pickup-truck-different-colors/

The rims seem a bit familiar no?

You know honestly, this is a car/suv/truck I really don’t care for. It doesn’t excite me and it looks really cheap.

 

[bwdavis7]

VW dealers in California are “deprived of the opportunity to sell highly desirable Scout Motors vehicles,” the lawsuit says.

And just why should consumers be deprived of the opportunity to buy a highly desirable Scout Motors vehicle with great experience without dealers. I just can't get started on this DTC thing again...it drives me nuts.

 

[Jamie@ScoutMotors]

I need @codythacker to confirm if it’s real or fake, because these articles have came out a few times and were mostly all fake.

Automotive News is a Crains publication and leans dealer-specific in their coverage. It is legit and ongoing battle.

 

[THil08]

Automotive News is a Crains publication and leans dealer-specific in their coverage. It is legit and ongoing battle.

Fuuuuuucccckkk. That suuuucks!

Well I hope ScoutMotors wins. God Speed

 

[cyure]

EREVs

https://insideevs.com/news/757484/reeves-can-unite-a-divided-america-on-evs/

 

[THil08]

CA dealers sue VW and Scout Motors to block direct sales model, seeks $35M in penalties

The CNCDA has filed a lawsuit against Scout Motors seeking to block the company’s plans to sell vehicles directly to consumers in California.

www.cbtnews.com

 

[OH1984]

EREVs

https://insideevs.com/news/757484/reeves-can-unite-a-divided-america-on-evs/

Decent article, thanks for sharing

 

[J Alynn]

I continue to laugh at the fact that VW dealers think they will get these. It’s comical.

 

[Chuckles]

I continue to laugh at the fact that VW dealers think they will get these. It’s comical.

This dealer in Tennessee keeps posting in Scout Facebook ads. He seems to think he'll be selling them!

 

[THil08]

They are jealous

 

[J Alynn]

This dealer in Tennessee keeps posting in Scout Facebook ads. He seems to think he'll be selling them!

Fools. They stand no chance and if this early they believe it can only imagine how fun they’d be to deal with during a sales transaction

 

[cyure]

Fools. They stand no chance and if this early they believe it can only imagine how fun they’d be to deal with during a sales transaction

I was just going to say. It will be a higher markup than the buzz with that kind of attitude. They need to kick rocks and go away.

 

[THil08]

What even worse is that almost every used car on lots today are repos. Since dealerships keep raising prices and banks keep giving out loans. So until the banks push back and dont give loans then dealerships can't sell. Then we will see pricing return to normal. We can thank the raising interest rates from the past 4 years. Which messed up these car loans and pricing. Because some people buying these cars are now stuck with loans that are worth more than the vehicle it self. So they are losing more than what they would have from driving off the lot.

 

[OH1984]

This dealer in Tennessee keeps posting in Scout Facebook ads. He seems to think he'll be selling them!

Hopefully they are not doing what ford dealers did with the bronco and placed a ton of reservations through each of their employees with the intent to markup and resell.

 

[OH1984]

What even worse is that almost every used car on lots today are repos. Since dealerships keep raising prices and banks keep giving out loans. So until the banks push back and dont give loans then dealerships can't sell. Then we will see pricing return to normal. We can thank the raising interest rates from the past 4 years. Which messed up these car loans and pricing. Because some people buying these cars are now stuck with loans that are worth more than the vehicle it self. So they are losing more than what they would have from driving off the lot.

View attachment 6277

Yes, default is continuing to climb. Tons of repos, bankruptcies, and foreclosures.

 

[cyure]

Hopefully they are not doing what ford dealers did with the bronco and placed a ton of reservations through each of their employees with the intent to markup and resell.

I guess I don’t understand how that would work. If it’s DTC it would have to be purchased by someone and then turn around and sold. So at that point wouldn’t it be a used car. The Bronco the dealership would get it into the dealer for someone and then just sell it to someone else, if I am understanding correctly, so it would still be new.

 

[OH1984]

I guess I don’t understand how that would work. If it’s DTC it would have to be purchased by someone and then turn around and sold. So at that point wouldn’t it be a used car. The Bronco the dealership would get it into the dealer for someone and then just sell it to someone else, if I am understanding correctly, so it would still be new.

So basically the demand for broncos was overwhelming and dealers were having ghost orders put in along with flippers who intended to resell the orders or change who ended up getting the vehicles.
I don’t remember all the details but they tried to capitalize on those who still were waiting in line for their reservations and would pay extra to get them faster. Ford then required drivers licenses and proof of customers being real because it got so bad.
With DTC maybe this isn’t an issue at all, unless they are going to do both so dealers can also sell them. Some states may not allow DTC.
J Allyn’s post about the dealer advertising just reminded me about it.