The VW Scout brand announcement has dealerships wonder what VW's plan is going to be going forward. Apparently the National Automobile Dealers Association has reached out to VW asking them questions about the marketing plan for the new brand.
More precisely, the dealers' associations wanted to have guarantees any marketing plan won’t violate state franchise laws.
According to a new report by Automotive News, the National Automobile Dealers Association and several state associations reached out to Volkswagen of America asking questions about how the new brand will be marketed and retailed in the United States. More precisely, the dealers' associations wanted to have guarantees that any marketing plan won’t violate state franchise laws, according to the online publication. We reached out to Volkswagen of America but the automaker declined to comment.
When Herbert Diess, VW Group CEO, announced the new brand, he said Scout will be established as a “separate, independent company” and will operate as a standalone business entity from the main VW brand. At the time, Diess did not explain how the brand’s products – an electric SUV and truck at launch – will be distributed, though. Scott Keogh, CEO of VW of America, decided to "quickly and clearly communicate Scout's distribution plan to your dealers who have made significant investments to support VW's business model and transformation to electrification."
Meanwhile, several dealer associations wrote Keogh generally asking how the Scout brand will be retailed in the United States. According to Automotive News, the letters varied in tone but everyone wanted to know whether the new brand would sell directly to consumers or be a competing franchise with the existing VW dealer network.
Apparently, Volkswagen is not ready to provide more information regarding its retail plans for the Scout brand. However, the Wolfsburg-based automaker promised to "share more news as it becomes available," so stay tuned.