Angry dealerships sue Scout for sidelining them

Volkswagen’s all-electric off-roader brand Scout won’t be delivering any cars until at least 2027, but some dealerships are already hoisting pitchforks due to the company’s decision to sell its cars directly.

We’ve already heard some warnings and threats from VW showrooms and their trade union affiliates before, when Scout just announced its EV lineup. However, it now looks like the affected dealerships will be suing the automaker in earnest. Selling cars directly via online channels will rob them of their profit as intermediaries, so that’s understandable.

On a related note, when Tesla Inc. decided against opening a nationwide dealership network in the United States, it managed to avoid litigation thanks to keeping its distance from the trade unions. Volkswagen, on the other hand, is closely tied with the dealerships and may struggle to persuade them to leave it alone. Direct sales may be better for the end consumer, but they hurt the businesses in between.