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

El scotto No rag-top, no rag-top(s) = not a prestigious car brand. Think it through. All of the high-end Germans and Lexus have rag-tops. Corvette is really its own brand.World-leading engines. AMG, M, S and well Lexus is third-world tough. GM makes one of the best V-8s in the world in Bowling Green. But nooooo, noooo, we're GM only Corvettes get Corvette engines. Balderdash! I say. Put Corvette engines in the top-tier Cadillacs. I know GM could make a world-class 3.5 liter V-6 but they don't or won't. In the interior everything that gets touched, including your butt, has to feel good. No exceptions.Some think that those who pay above MSRP and brag about it are idiots. Go the opposite direction, and offer an extended 10-year 100,000-mile factory warranty. At a reasonable price. That's Acura's current business model.
Carrera 2014 Toyota Corolla with 192,000 miles bought new. Oil changes every 5,000 miles, 1 coolant flush, and a bunch of air filters and in cabin air filters, and wipers. On my 4th set of tires.Original brake pads ( manual transmission), original spark plugs. Nothing else...it's a Toyota. Did most of oil changes either free at Toyota or myself. Also 3 batteries.2022 Acura TLX A-Spec AWD 13,000 miles now but bought new.Two oil changes...2006 Hyundai Elantra gifted from a colleague with 318,000 when I got it, and 335,000 now. It needed some TLC. A set of cheap Chinese tires ($275), AC compressor, evaporator, expansion valve package ( $290) , two TYC headlights $120, one battery ( $95), two oil changes, air filters, Denso alternator ( $185), coolant, and labor for AC job ( $200).
Mike-NB2 This is a mostly uninformed vote, but I'll go with the Mazda 3 too.I haven't driven a new Civic, so I can't say anything about it, but two weeks ago I had a 2023 Corolla as a rental. While I can understand why so many people buy these, I was surprised at how bad the CVT is. Many rentals I've driven have a CVT and while I know it has one and can tell, they aren't usually too bad. I'd never own a car with a CVT, but I can live with one as a rental. But the Corolla's CVT was terrible. It was like it screamed "CVT!" the whole time. On the highway with cruise control on, I could feel it adjusting to track the set speed. Passing on the highway (two-lane) was risky. The engine isn't under-powered, but the CVT makes it seem that way.A minor complaint is about the steering. It's waaaay over-assisted. At low speeds, it's like a 70s LTD with one-finger effort. Maybe that's deliberate though, given the Corolla's demographic.
Mike-NB2 2019 Ranger - 30,000 miles / 50,000 km. Nothing but oil changes. Original tires are being replaced a week from Wednesday. (Not all that mileage is on the original A/S tires. I put dedicated winter rims/tires on it every winter.)2024 - Golf R - 1700 miles / 2800 km. Not really broken in yet. Nothing but gas in the tank.
SaulTigh I've got a 2014 F150 with 87K on the clock and have spent exactly $4,180.77 in maintenance and repairs in that time. That's pretty hard to beat.Hard to say on my 2019 Mercedes, because I prepaid for three years of service (B,A,B) and am getting the last of those at the end of the month. Did just drop $1,700 on new Michelins for it at Tire Rack. Tires for the F150 late last year were under $700, so I'd say the Benz is roughly 2 to 3 times as pricy for anything over the Ford.I have the F150 serviced at a large independent shop, the Benz at the dealership.