Nov 07 2024

Volkswagen is facing mounting tensions with its U.S. dealership network over plans to sell the new electric Scout SUV directly to consumers, bypassing traditional dealerships. The German automaker’s strategy to introduce Scout as a standalone electric brand is drawing concerns from U.S. dealers, who are worried that the direct-sales model could undercut their business and erode profits. As VW moves forward with its EV ambitions, the shift to a direct-to-consumer sales approach is seen as a challenge to the long-established dealership framework in the U.S., where franchise agreements and commissions play a key role. Dealers have expressed frustration over the lack of consultation in the decision-making process, leading to potential legal and financial disputes. As the showdown escalates, the outcome could have wider implications for the automotive industry and its relationships with dealerships.