US car dealer groups want answers from VW to ‘alarming’ Scout announcement

Stanton acknowledged that Keogh had been “a consistent and unequivocal advocate for the franchised dealer retail model,” but cautioned that “the longer your dealers are left without information and answers to their questions, the more speculation will fill the void.”

Stanton offered NADA’s help in disseminating all of the answers “to the many state association executives who are currently getting questions from your dealers.” A NADA spokesperson authenticated the letter and declined to comment.

A number of state dealer associations — committed to protecting franchise laws for their members — have already written to or are in the process of writing to Keogh, according to several VW dealers and union leaders across the country. Automotive News† Communications are expected to vary in tone just as state franchise laws vary, but in general they ask for more information about how Scout vehicles will be retailed and claim that VW and Audi dealers are not in stand the cold.

An example, sent Monday by the North Carolina Automobile Dealers Association, is generally considered representative. In it, NCADA President Robert Glaser wrote:

“Despite repeated assurances over the years by Volkswagen that its dealers are ‘partners’ in promoting and promoting VW products, this announcement caused immediate consternation and concern among all VW dealers. Certainly, given the strong history of a supportive and effective VW dealer network, even during the dieselgate fiasco, the clear expectation would be that current VW dealers would get their first chance to sign up as Scout dealers. However, the widespread belief is that the underlying reason VW plans to is to create a parallel dealer network, VW’s intention is to reduce the number of VW dealers.”

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