Premier Companies recently expanded its footprint with the acquisition of a BMW dealership in Northern California. On today’s episode of Inside Automotive, Premier Companies President Joe Laham discusses the acquisition, his group’s business performance, and shares his perspective on Scout Motors being granted a dealer license in Colorado as a Volkswagen and Audi dealer.
Because Premier Companies primarily operates in New England, buying a store in California may seem unusual. Strict regulations in California have led many dealer groups to consider leaving the market. When his banker first approached him about the location, Laham shared a similar sentiment. However, he has great trust in the BMW brand.
Despite challenges in California, it remains the largest auto market in the United States and has significant potential. It also has the highest EV market penetration, and BMW offers a strong mix of vehicles, including electric models.
Laham’s group also owns Volkswagen and Audi dealerships, giving him a unique perspective on Scout Motors. Volkswagen’s stance is that Scout Motors is a separate entity. However, the automaker’s push forward with Scout is a betrayal of its extensive dealer network. Laham notes that when Tesla and Rivian introduced their direct-to-consumer sales model, they were genuinely independent. No matter how VW attempts to position it, Scout Motors, however, is not.
It’s also frustrating to Audi dealers that the VW Group is willing to move forward with Scout without addressing the significant opportunities within Audi’s product lineup.
Laham previously anticipated that VW might slow the efforts after federal EV tax incentives were canceled. But, unfortunately, that is not the case. He also believes that competition with Scout Motors—if they’re successful in their push forward—will also extend beyond vehicle sales into fixed operations. He predicts that when Scout Motors opens service centers, they will likely attempt to recruit technicians from local VW and Audi dealerships.
"Our business is an amazing business, and we've been very blessed with a lot of success in it."
Regarding VW’s motivation, Laham believes the company sees an opportunity to build a stronger retail sales outlet. In many parts of the world, including VW’s home country of Germany, direct-to-consumer sales are the norm. However, in the United States, the franchise system is proven. Most automakers operating outside the system, such as Tesla, Rivian, and Lucid, have struggled.
Turning to Premier Companies’ performance, Laham shared that the group was ahead in September. However, a dramatic drop in consumer demand during September, October, and November—due to pull-ahead purchases—affected sales.
Laham commended Stellantis for its turnaround plan and predicts strong performance for the automaker in 2026. He highlighted efforts such as realigning pricing, bringing back the iconic Cherokee, and reaffirming Stellantis’ commitment to the U.S. market.
Looking ahead to 2026, Laham expects a steady year. However, vehicle affordability will remain the industry’s biggest challenge. With fewer vehicles being leased, the used-car supply has tightened. However, if interest rates ease and new vehicles become more affordable, the industry could be well-positioned for another successful year.
