U.S. car dealer groups want answers from VW on ‘alarming’ Scout announcement

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Stanton acknowledged that Keogh had “been a dependable and whole-throated advocate for the franchise seller retail model,” but warned that “the extended your sellers go devoid of information and facts and answers to their issues, the more that speculation will fill the void.”

Stanton provided NADA’s help in distributing any responses “to the many condition association executives, who are now finding inquiries from your dealers.” A spokesman for NADA authenticated the letter and declined any additional comment.

A amount of point out supplier associations — which operate to safeguard franchise guidelines for their users — have either by now published to Keogh or were being in the course of action of performing so, according to various VW sellers and association executives from throughout the country who spoke to Automotive News. The communications are expected to differ in tone, just as condition franchise laws range, but typically demand from customers extra details on how Scout motor vehicles will be retailed and assert that VW and Audi sellers not be still left out in the cold.

1 example, despatched Monday from the North Carolina Car Sellers Affiliation, is thought to be broadly representative. In it, NCADA President Robert Glaser wrote:

“Irrespective of recurring assurances all over the yrs by Volkswagen that its sellers are ‘partners’ in advancing and marketing VW products and solutions, this announcement generated instantaneous dismay and worry amid all VW dealers. Undoubtedly, offered the strong background of a supportive and efficient VW dealer community, even all through the diesel-gate fiasco, the apparent expectation would be that latest VW dealers would be presented the very first prospect to enlist as a Scout vendor. However, the prevalent perception is that the fundamental motive VW is preparing to make a parallel supplier network is VW’s intention to decrease the VW dealer count.”

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