Photo: Volkswagen
Although it was a long time in the brewing, Volkswagen’s Scout revival announcement took many people by surprise. Perhaps the most surprised were the Volkswagen’s dealers, which were not informed of the move before the announcement.
The lack of information about how Volkswagen intends to sell the new Scout electric vehicles has left the company’s dealers angry. They feel Volkswagen has decided to “cut the middleman” on this matter, similar to what other EV makers are doing. Tesla is the most successful electric vehicle maker and has got where it stands by selling directly to its customers. Herbert Diess never hid his admiration for Elon Musk, and thus many believe Volkswagen will try and copy Tesla and its direct-sales model.
All EV startups, Tesla being the most prominent example, have started the business without establishing a dealer network. On the other hand, traditional carmakers have kept their dealers in the loop even when they started building electric vehicles. This might change in the future, though, and both Mercedes-Benz and Ford have indicated they are seeking a more direct relationship with their customers.
Dealers became suspicious after the announcement, especially as Volkswagen took no steps to clear the waters. Speaking with Automotive News on condition of anonymity, one Volkswagen dealer voiced his concerns: “If we were going to have any involvement, they would have told us something. But they haven't said a word to us, either before or after the announcement.”
According to Automotive News, Volkswagen of America did inform the dealers after the event. On May 13, the sales and marketing head Andrew Savvas sent a letter to Volkswagen’s 650 dealers confirming Scout will be an independent brand within Volkswagen Group. Far from soothing dealers’ concerns, the letter emphasized that the dealers “will have no claim” on the new company’s products. It’s not clear whether Scout will establish its own dealer network or use a direct-sale model, though.
Volkswagen has announced plans to establish a “separate, independent company” to resurrect the Scout name it acquired a year ago with the purchase of Navistar. The first prototype will be ready in 2023 and the production would start in 2026. There’s still plenty of time to establish all the details, including the dealers’ role in selling and servicing the vehicles, although many fear Volkswagen already made a decision.
All EV startups, Tesla being the most prominent example, have started the business without establishing a dealer network. On the other hand, traditional carmakers have kept their dealers in the loop even when they started building electric vehicles. This might change in the future, though, and both Mercedes-Benz and Ford have indicated they are seeking a more direct relationship with their customers.
Dealers became suspicious after the announcement, especially as Volkswagen took no steps to clear the waters. Speaking with Automotive News on condition of anonymity, one Volkswagen dealer voiced his concerns: “If we were going to have any involvement, they would have told us something. But they haven't said a word to us, either before or after the announcement.”
According to Automotive News, Volkswagen of America did inform the dealers after the event. On May 13, the sales and marketing head Andrew Savvas sent a letter to Volkswagen’s 650 dealers confirming Scout will be an independent brand within Volkswagen Group. Far from soothing dealers’ concerns, the letter emphasized that the dealers “will have no claim” on the new company’s products. It’s not clear whether Scout will establish its own dealer network or use a direct-sale model, though.
Volkswagen has announced plans to establish a “separate, independent company” to resurrect the Scout name it acquired a year ago with the purchase of Navistar. The first prototype will be ready in 2023 and the production would start in 2026. There’s still plenty of time to establish all the details, including the dealers’ role in selling and servicing the vehicles, although many fear Volkswagen already made a decision.
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