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