TSLA354.080-22.285%
GM87.7600.54%
F14.6200.21%
RIVN15.740-0.17%
CYD37.430-0.24%
HMC32.670-0.37%
TM197.110-2.76%
CVNA74.5901.16%
PAG219.7700.15%
LAD386.8107.83%
AN212.3605.18%
GPI300.76016.43%
ABG217.2601.85%
SAH81.0001.58%
TSLA354.080-22.285%
GM87.7600.54%
F14.6200.21%
RIVN15.740-0.17%
CYD37.430-0.24%
HMC32.670-0.37%
TM197.110-2.76%
CVNA74.5901.16%
PAG219.7700.15%
LAD386.8107.83%
AN212.3605.18%
GPI300.76016.43%
ABG217.2601.85%
SAH81.0001.58%
TSLA354.080-22.285%
GM87.7600.54%
F14.6200.21%
RIVN15.740-0.17%
CYD37.430-0.24%
HMC32.670-0.37%
TM197.110-2.76%
CVNA74.5901.16%
PAG219.7700.15%
LAD386.8107.83%
AN212.3605.18%
GPI300.76016.43%
ABG217.2601.85%
SAH81.0001.58%


Len Bellavia urges dealer action against Scout’s direct-to-consumer sales

Scout Motors’ decision to bypass Volkswagen stores and sell vehicles directly to consumers has stirred significant concerns in the retail automotive industry. In light of dealers’ recent success in the CDK class action settlement, many are now considering a similar approach to Volkswagen.

In today’s episode of Inside Automotive, Len Bellavia, founding partner of the law firm of Bellavia Blatt, also known as DealerLaw.com, will help us unpack this issue.

What sets Scout fundamentally apart from brands with similar direct-to-consumer (DTC) sales models, such as Tesla and Rivian, is that they are entirely independent brands, whereas Scout is affiliated with Volkswagen. If there is an existing network of franchise dealers, the manufacturers have an obligation to treat them fairly.

Volkswagen’s attempt to present Scout as a separate entity is a roundabout way to circumvent state franchise laws that explicitly prohibit manufacturers from competing with dealerships.

Bellavia equates Volkswgen’s decision as “waging war against their own dealers” as it brashly leverages the imbalanced power dynamics to push Scout forward. The automaker knows that most dealers are reluctant to pursue legal recourse, and it heavily relies on that fact to avoid legal trouble.

The potential ripple effect of Scout’s success with this new venture is a major concern. If they succeed, it could pave the way for other manufacturers to follow suit, significantly altering the dynamics of the automotive industry. While it’s highly unlikely that they will, Bellavia suspects that Volkswagen will attempt to settle with dealers in an arrangement that still gets them what they ultimately want–DTC sales access—and get the dealers to play along.

Bellavia advises dealers to exercise their rights and oppose Volkswagen. The National Automobile Dealers Association (NADA) and state dealer groups across the U.S. are already standing in solidarity and rallying to challenge Scout Motors in court.

"The franchise model isn't just about selling cars; it's about consumer protection, service, and competition, which all benefit the end customer." - Len Bellavia
Read More


More from Daily Automotive News
Courtesy Automotive Group adds two Tucson dealerships

Courtesy Automotive Group adds two Tucson dealerships

- September 4, 2026
Pinnacle Mergers & Acquisitions has facilitated the sale of Watson Chevrolet and Infiniti of Tucson in Arizona to Scott Gruwell, President and CEO of Courtesy Automotive Group. The transaction expands...
Sonic Automotive acquires Porsche Walnut Creek from Fletcher Jones

Sonic Automotive acquires Porsche Walnut Creek from Fletcher Jones

- September 2, 2026
Sonic Automotive acquired Porsche Walnut Creek in Walnut Creek, California, from Fletcher Jones Automotive Group on August 25, 2026, in a transaction that also included the dealership’s related real estate....
When did fixing your own car become someone else's decision?

When did fixing your own car become someone else’s decision?

- September 2, 2026
You paid for the car. You insure it. You fill the tank. The title has your name on it. So why does fixing a broken sensor or updating a module...
Matthew Sanderson acquires Indiana Ford dealership

Matthew Sanderson acquires Indiana Ford dealership

- August 31, 2026
Tim Lamb Group facilitated the sale of Auto Park Ford of La Porte to first-time dealership owner Matthew Sanderson, marking his first dealership ownership opportunity. Sanderson will operate the store...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.