Florida VW/Audi dealers file lawsuit to block Scout Motors' direct sales to consumers

[zacnelms2027]

It's all a money grab. I've had pleasent experiences at dealerships in Oklahoma (most recently Audi of OKC where my wife and I bought a new Q7 for her). That being said, there's ZERO reason why states should be banning direct car sales. Heck, they can even pop on a sales tax for being purchased in the state. It would force dealerships to actually change their playbook and stop tacking on ridiculous fees. Scout is smart enough to know if they have dealers sell, they'll have a 20% markup based on the number of reservations (over 50,000). VW Group sees that and wants in on the profit. Nothing more than corporate greed.

 

[Dive Bar Casanova]

Some time ago I took the daughter into a Private school to pay her tuition.

Back then it was $14k a year and that was a big drink of water.
(That school is $60k today).

We walked into the admissions office and learned the owner of the Toyota dealership across the street passed away.

He left money in his will to pick Up all the schools tuitions for the next 6 years.
Small dealer, huge school enrollment

Same dealer that claimed they only made $75 when we bought a new Avalon.

Best kept secret in the world are new dealer profits what they really paid for their rolling stock.

 

[anthonypape]

Some time ago I took the daughter into a Private school to pay her tuition.

Back then it was $14k a year and that was a big drink of water.
(That school is $60k today).

We walked into the admissions office and learned the owner of the Toyota dealership across the street passed away.

He left money in his will to pick Up all the schools tuitions for the next 6 years.
Small dealer, huge school enrollment

Same dealer that claimed they only made $75 when we bought a new Avalon.

Bedt kept secret in the world are new dealer profits what they really paid for their flooring.

Sure dealers make big money. Particularly Toyota and Lexus dealers. It is not uncommon for them to net for themselves after paying all bills, net profit of $500k per month. Some as high as $1 million per month. This naturally chaps the ass of every manufacturer. In essence if they went direct to consumers they would all double their net profits. But when the automobile was just getting going having dealers was the only way car makers could afford to get their product into customer hands. The dealers made the car makers a success and the car makers made the dealers a success. In my opinion it would be an incredibly low integrity, sleazy, low down thing to cut your business partners out now that they could afford to. If a car maker does that to their business partners, how much do you think they care about you? Or their employees? I would say Zero. That’s how much a manufacturer cares about anyone else or the planet for that
matter.

 

[zacnelms2027]

Sure dealers make big money. Particularly Toyota and Lexus dealers. It is not uncommon for them to net for themselves after paying all bills, net profit of $500k per month. Some as high as $1 million per month. This naturally chaps the ass of every manufacturer. In essence if they went direct to consumers they would all double their net profits. But when the automobile was just getting going having dealers was the only way car makers could afford to get their product into customer hands. The dealers made the car makers a success and the car makers made the dealers a success. In my opinion it would be an incredibly low integrity, sleazy, low down thing to cut your business partners out now that they could afford to. If a car maker does that to their business partners, how much do you think they care about you? Or their employees? I would say Zero. That’s how much a manufacturer cares about anyone else or the planet for that
matter.

Unless I'm mistaken, I think most dealers make most of their money on service/financing. They don't draw a large profit on the sale of the car itself. If there are dealers, the issue is going to be markups, similar to what we saw with COVID and what Dodge dealerships are doing with their "Final Edition" hemis. And that's fine. There's nothing wrong with profitting. But, whenever that $60k base model Scout is $77k out the door, they won't sell near as many. Greed never looks pretty.

 

[Latrant]

Sure dealers make big money. Particularly Toyota and Lexus dealers. It is not uncommon for them to net for themselves after paying all bills, net profit of $500k per month. Some as high as $1 million per month. This naturally chaps the ass of every manufacturer. In essence if they went direct to consumers they would all double their net profits. But when the automobile was just getting going having dealers was the only way car makers could afford to get their product into customer hands. The dealers made the car makers a success and the car makers made the dealers a success. In my opinion it would be an incredibly low integrity, sleazy, low down thing to cut your business partners out now that they could afford to. If a car maker does that to their business partners, how much do you think they care about you? Or their employees? I would say Zero. That’s how much a manufacturer cares about anyone else or the planet for that
matter.

All that you list is why we need a completely free market where Chinese makes can sell DTC or via dealership and compete with US OEMs.

Now you’ll say ‘but Chinese makes are subsidized”. Well, the oil industry continues to be highly subsidized, OEMs have been bailed out, EV tax credit is a subsidy. We subsidized the highway systems over train travel and good quality subways everywhere. We have cities that are unwalkable and unnavigable without a car to further subsidize car makers/sellers and oil. The Oligarchs are blocking net metering and wind and charging and taxing EV registration at a higher rate.

it’s all subsidizing businesses that continue to offshore jobs or replace them with AI or automation, in the name of profit to shareholders. They buy back shares rather than invest in workers.

the final customer and average person continues to subsidize all of these multimillionaire’s and billionaire’s lives.

I know my three daughters are done with subsidizing their lifestyles.

 

[anthonypape]

All that you list is why we need a completely free market where Chinese makes can sell DTC or via dealership and compete with US OEMs.

Now you’ll say ‘but Chinese makes are subsidized”. Well, the oil industry continues to be highly subsidized, OEMs have been bailed out, EV tax credit is a subsidy. We subsidized the highway systems over train travel and good quality subways everywhere. We have cities that are unwalkable and unnavigable without a car to further subsidize car makers/sellers and oil. The Oligarchs are blocking net metering and wind and charging and taxing EV registration at a higher rate.

it’s all subsidizing businesses that continue to offshore jobs or replace them with AI or automation, in the name of profit to shareholders. They buy back shares rather than invest in workers.

the final customer and average person continues to subsidize all of these multimillionaire’s and billionaire’s lives.

I know my three daughters are done with subsidizing their lifestyles.

I’m fine with DTC. For anyone. Except those that have existing contracts with franchise dealers. These makes chose to franchise. So they would have to buy those dealers out or come to an agreement. I don’t care about China or any proposed business model. I’m merely stating it’s dirty pool to break your promise with your business partners that got you to where you are now. For example now that McDonalds is big should they be able to open restaurants to compete with their franchisees? This is the dynamic VW is up against. Nothing to do with the free market. Everything to do with contract law and integrity.

 

[joewilk45]

well we all have front row seats to the what ifs as to how we purchase and where. In the meantime looking forward to getting updates as to when we might see actual offerings and models as well as options etc when does everyone think we might see actual offerings and build sheets with cost 6 months ??

 

[Latrant]

well we all have front row seats to the what ifs as to how we purchase and where. In the meantime looking forward to getting updates as to when we might see actual offerings and models as well as options etc when does everyone think we might see actual offerings and build sheets with cost 6 months ??

October 2025.

 

[Latrant]

I’m fine with DTC. For anyone. Except those that have existing contracts with franchise dealers. These makes chose to franchise. So they would have to buy those dealers out or come to an agreement. I don’t care about China or any proposed business model. I’m merely stating it’s dirty pool to break your promise with your business partners that got you to where you are now. For example now that McDonalds is big should they be able to open restaurants to compete with their franchisees? This is the dynamic VW is up against. Nothing to do with the free market. Everything to do with contract law and integrity.

while there is something to be said for that, can’t a company invest their profits in a company that is separate from them?

 

[Sloo]

If I have to use a dealer, I’m out.
They are all greedy con-men.

 

[anthonypape]

while there is something to be said for that, can’t a company invest their profits in a company that is separate from them?

Of course they can provided it doesn’t break their contract. So if they want to sell cheeseburgers, air planes, maybe even motorcycles. But not vehicles. I would have to see the franchise agreement. Can you see this from the dealer perspective. If I was a dealer I would think well VW is probably going to pour all their energy into Scout. They come up with a hot new design or concept that vehicle will be badged Scout. Prime example here is VW does not offer a pick up truck. Do you think it’s a coincidence that Scout has a truck and there are no plans to build a VW pick up? Why would they make a VW pick up as it will hurt Scout. Pick up trucks are the big seller in America. Toyota kills it with them so we know foreign companies can compete here. In essence it will come down to the lawyers but VW is really playing with fire. They are liable to have the dealers just walk away from their VW stores and bring the whole company to a screeching halt.

And to the person that stated dealers are con men. Personally I don’t trust most big companies. Don’t forget VW cheated emissions testing committing a crime against humanity. Boeing did the unspeakable 737 redesign and lied that nothing really changed to save money on training pilots on the all new plane and two crashed right away. All I have to do is mention the name Pfizer or Purdue Pharma.