Dealer Groups are Up In Arms About Potential for Scout and Sony Afeela to Sell Cars Directly to Buyers

by Chris Teague

Published: April 22nd, 2024

dealer groups are up in arms about potential for scout and sony afeela to sell cars

Dealers are often the first group to sound concerns when something changes in the auto industry, whether they’re justified in their complaints or not. Most recently, a state dealer association created an ad asking Volkswagen Group and Sony Honda Mobility not to sell their upcoming EVs outside of the existing dealer network over concerns the new divisions could follow Tesla and Rivian in selling directly to buyers.

The group placed an ad in the April 15 issue of Automotive News and has collected support from all 50 state and 21 metro-area dealer associations. They warned that federal and local laws could prohibit selling directly to consumers and said that the groups could pursue legal options if they attempted to do so.

Advocates for the groups have long complained that they’ve received no information from automakers after years of trying.

“After two years of asking and getting nothing, frustration is very high,” one person told Automotive News. “If they want to sell the vehicles direct, it’s going to be an incredibly difficult battle.”

Executives from the automakers have dodged questions about the situation, noting that they wanted to leave their options open as market conditions evolve. At the same time, VW is moving to bring the Cupra brand to the U.S., where it’s currently unclear how they’ll be sold.

While it’s hard to argue against the dealer system for owner support and servicing, it’s also hard to argue against more choices for buyers. Purchasing online or ordering a car can be a vastly better experience than trying to track down a model on a dealer’s lot and then negotiate a price anywhere near MSRP, so it will be interesting to see where the cards fall when the new brands arrive on the market.

[Image: T. Schneider/Shutterstock.com]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

#VolkswagenGroup #scoutmotors #sonyafeela #CarDealers

Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

More by Chris Teague

Comments

Join the conversation

2 of 17 comments

Jeff on Apr 22, 2024

“After two years of asking and getting nothing, frustration is very high,” one person told Automotive News. “If they want to sell the vehicles direct, it’s going to be an incredibly difficult battle.”

Works for Tesla.

Like Reply
Vatchy on Apr 24, 2024

What is the difference between a car dealer and a drug dealer? Not much - you can end up dead using what they sell you. The real difference is that one is legal and one is not.

Like Reply

Recent Comments

CM Korecko Cadillacs traditionally have been opulent, brash and leaders in the field; the "Standard of the World".That said, here's how to fix the brand:[list=1][*]Forget German luxury cars ever existed.[/*][*]Get rid of the astromech droid names and bring back Seville, Deville, Eldorado, Fleetwood and Brougham.[/*][*]End the electric crap altogether and make huge, gas guzzling land yachts for the significant portion of the population that would fight for a chance to buy one.[/*][*]Stop making sports cars and make true luxury cars for those of us who don't give a damn about the environment and are willing to swim upstream to get what we really want.[/*][*]Stop messing around with technology and make well-made and luxurious interiors.[/*][*]Watch sales skyrocket as a truly different product distinguishes itself to the delight of the target market and the damnation of the Sierra Club. Hell, there is no such thing as bad publicity and the "bad guy" image would actually have a lot of appeal.[/*][/list=1]
FreedMike Not surprisingly, I have some ideas. What Cadillac needs, I think, is a statement. They don’t really have an identity. They’re trying a statement car with the Celestiq, and while that’s the right idea, it has the wrong styling and a really wrong price tag. So, here’s a first step: instead of a sedan, do a huge, fast, capable and ridiculously smooth and quiet electric touring coupe. If you want an example of what I’m thinking of, check out the magnificent Rolls-Royce Spectre. But this Cadillac coupe would be uniquely American, it’d be named “Eldorado,” and it’d be a lot cheaper than the $450,000 Spectre – call it a buck twenty-five, with a range of bespoke options for prospective buyers that would make each one somewhat unique. Make it 220 inches long, on the same platform as the Celestiq, give it retro ‘60s styling (or you could do a ‘50s or ‘70s throwback, I suppose), and at least 700 horsepower, standard. Why electric? It’s the ultimate throwback to ‘60s powertrains: effortlessly fast, smooth, and quiet, but with a ton more horsepower. It’s the perfect drivetrain for a dignified touring coupe. In fact, I’d skip any mention of environmental responsibility in this car’s marketing – sell it on how it drives, period.  How many would they sell? Not many. But the point of the exercise is to do something that will turn heads and show people what this brand can do.  Second step: give the lineup a mix of electric and gas models, and make Cadillac gas engines bespoke to the brand. If they need to use generic GM engine designs, fine – take those engines and massage them thoroughly into something special to Cadillac, with specific tuning and output. No Cadillac should leave the factory with an engine straight out of a Malibu or a four-banger Silverado. Third step: a complete line-wide interior redo. Stop the cheapness that’s all over the current sedans and crossovers. Just stop it. Use the Lyriq as a blueprint – it’s a big improvement over the current crop and a good first step. I’d also say Cadillac has a good blend of screen-controlled and switch-controlled user interfaces; don’t give into the haptic-touch and wall-to-wall screen thing. (On the subject of Caddy interiors – as much as I bag on the Celestiq, check out the interior on that thing. Wow.)Fourth step: Blackwing All The Things – some gas, others electric. And keep the electric/gas mix so buyers have a choice.Fifth step: be patient. That’s not easy, but if they’re doing a brand reset, it’ll take time. 
NJRide So if GM was serious about selling this why no updates for so long? Or make something truly unique instead of something that looked like a downmarket Altima?
Kmars2009 I rented one last fall while visiting Ohio. Not a bad car...but not a great car either. I think it needs a new version. But CUVs are King... unfortunately!
Ajla Remember when Cadillac introduced an entirely new V8 and proceeded to install it in only 800 cars before cancelling everything?