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

Bd2 Hyundai is, of course, not on this list as a forefront leader in ethics and accountability. Meanwhile the egg is in Toyota's face yet again.
Jkross22 This is likely my final chime in/experience with our leased CX9 as the lease is up in less than a month. We're getting 19.5- 20.0 mpg combined over the last few months. That's with the legacy 2.5T with the 6 speed auto. Not great but it is a responsive drive train and there's a fuel penalty for that I suppose. If you're thinking about picking up a used CX9, Mazda settled a lawsuit that extends the warranty of the 2.5T for another 2 years/24k miles. Double check to make sure the 2.5T model you're looking at is covered by this. This had to do with an oil consumption issue. We did test drive the CX90 with the inline 6. It was nice, but not what I was expecting in terms of sound and smoothness. As others have said, it ain't no BMW inline 6. Power was ok, but oddly not as responsive as the 2.5T. Maybe they'll get that sorted in the next couple of years. The improved mpg has to be due to the hybrid system and shutting off at stops. Lastly, Mazda's lease return process is terrible. They're good at reminding us the end is nigh, but they outsourced the inspection process to AutoVin. AutoVin noted a scratch that AutoVin said is normal wear and tear, but Mazda says (in their lease end paperwork) exceeds normal wear and tear. I took it to the nearest dealer and the manager there claimed to have no say in the return process and was unable/unwilling to assist.I called the leasing dealer and they said they couldn't help either. I called Mazda Finance and they said they would send AutoVin out again for a 2nd look, and no one has followed up to do this. In fact, it's extraordinarily difficult to get anyone at Mazda Finance to answer a call. Abysmal customer support all around. I would not lease a vehicle from Mazda again.Mazda says that they can send a final bill to us within 60 days if they determine there is anything beyond normal wear and tear. I guess I'll repair the scratch, but customers shouldn't be left guessing or getting conflicting information from the inspection company and the manufacturer. And neutering your dealers in this process is counterproductive and foolish.
MaintenanceCosts Everyone at every stage of the supply chain lies. On the one hand OEMs should be vigilant, but on the other hand this sort of thing is going to happen once in a while no matter how careful an OEM is. It's hard to know from this report whether the OEMs cited here reasonably should have known of the issue or not.The real solution is for more countries to have and enforce laws against bad labor practices. We can help with that a bit through trade agreements but in the end the countries have to make the decision themselves to do it. Xi is not going to make that decision.
ToolGuy QOTD: Which chain has the best coffee on the interstate?(Tops for me right now is the robot dispenser at Pilot - grinds your choice of better-than-average beans and brews one cup at a time. Did back-to-back comparisons last week with the QuikTrip robot and it is not as good.)
Paul Alexander If there had been no Congressional ban on this type of practice, obviously it would be okay. I allow politicians to dictate my morality.