In early 2010, Tesla took a few bricks out of the sales wall that separates automakers from consumers in the US market. Could this wall come down one day soon?
The agency model, where athleisure-clad salespeople perform the high-low, “let me see what we can do” ballroom dance, has been an anachronism since consumers became accustomed to buying things online. By most accounts, dealers represent a major obstacle to EV adoption, as most salespeople outside of California remain unfamiliar with EVs, despite educational programs put in place by Chargeway and others, and dealers continue to actively lobby against pro-EV policies.
Now Scout Motors, a Volkswagen Group brand that makes powerful, off-road-capable electrified vehicles, has announced plans to sell its trucks directly to consumers when it launches in 2027, with transparent pricing, online orders and company-owned stores. Trader groups are already organizing legal challenges.
Photos by John Voelker
InsideEVs’ Mack Hogan writes that VW dealers are “furious” about Scout’s plans to take them out of the picture, and claim they have long wanted VW to offer cars of this type in the US market (most likely without electric motors). “Just showcasing these new vehicles that could fit well into Volkswagen’s portfolio is rubbing salt in the wound here,” Mike Stanton, CEO of the National Automobile Dealers Association, told Automotive News.
California dealers plan to file a lawsuit, arguing that Scout competes with Volkswagen dealers, a deadly sin under the state’s franchise laws. Scout stresses that it is a different company from Volkswagen. (Hmmmm…could this be part of the reason legacy automakers are creating new subsidiaries to sell their electric cars?)
Scouting executives believe they will be able to avoid legal challenges. “We are very confident that we will prevail,” Cody Thacker, vice president of growth at Scout Motors, told InsideEVs. “We think we have the right position here, and it is never inappropriate to defend consumer choice and consumer freedom to buy cars.”
More: Scout Motors unveils EV Terra truck and Traveler SUV concepts, including Harvester range extender
Thacker added that the auto dealer groups’ claims are “what you would expect from a lobbying entity.” “This is what you would expect from a trade association. We do not believe there is any truth to these allegations.”
“For me, there’s no doubt that if we can deliver a purchasing process that’s transparent, seamless, fast and really fun, that’s what we do,” Scout CEO Scott Keogh told InsideEVs. I believe these things must be decided by the American consumer, and companies must innovate and compete. “I’ll let the market do the talking.”
The legal battles will likely be fought state-by-state over the course of years (as is the ongoing Tesla saga), and Mr. Hogan points out that Scout doesn’t need to win in every state. Rivian and Tesla get around local prohibitions by simply doing the paperwork to sell in one state, and deliver the car in another. Setting up service centers is more complex, but Mr Thacker believes Scout will be able to handle it. “Within five years of our launch, we will have 100 rooftops across the United States and Canada,” he said. “All of these sites will over-index the service infrastructure.”
Source: InsideEVs
