Group of 14 California Volkswagen Dealers Pushes Back on Scout Sales Approach

Group of 14 California Volkswagen dealers pushes back on Scout sales approach

On the Dash: Legal action reinforces franchise protections and could set a precedent for direct-to-consumer sales limits Outcome may impact how OEMs structure new EV or sub-brands to bypass dealer networks Ongoing litigation adds uncertainty for product access and future inventory allocation According to the California New Car Dealers Association (CNCDA), 14 California Volkswagen dealers filed protests at the California New Motor Vehicle Board …

California Volkswagen Dealers File State Protests Over Scout Motors Direct Sales

Fourteen California Volkswagen dealers have filed protests at the state’s New Motor Vehicle Board challenging Volkswagen and its Scout Motors subsidiary over plans to sell Scout vehicles directly to consumers, opening a second legal front against the automaker’s direct-to-consumer strategy. The California New Car Dealers Association announced the filings May 1. The protests allege Volkswagen is circumventing state franchise law by positioning Sc…