The push for electric vehicles is gathering speed, and legacy automakers and new entrants alike are racing to carve out their place in a rapidly evolving market. However, the path brands choose to reach customers could shape not just their success, but also the experience of consumers, the health of local communities, and the future of dealership networks.
Volkswagen Group’s decision to revive the iconic Scout brand as an EV and sell it directly to consumers sidestepping its vast network of 635 U.S. Volkswagen dealerships raises major concerns. These dealerships already meet rigorous standards, offering factory-approved showrooms, service facilities, and established relationships with local buyers. Ignoring this powerful infrastructure in favor of building a separate direct-sales network risks wasting resources and missing opportunities for an efficient market launch.
VW’s dealer network isn’t just a legacy asset. It’s a dynamic system of modern showrooms, trained staff, robust parts inventories and deep community ties positioning it perfectly to support the new Scout EV lineup. With locations in cities, suburbs and small towns, these dealerships could deliver quick, comprehensive support to customers across the country, fueling Scout’s growth and helping more Americans make the leap to electric driving.
Building a direct sales operation from scratch, on the other hand, comes with huge challenges. New brands like Tesla, Rivian, and Lucid have focused sales and service centers only in the nation’s largest cities, leaving out suburban, midsize and rural communities. Establishing a national footprint for Scout would require expensive real estate, complex logistics and high startup costs factors that could delay the rollout and inflate prices for everyone.
For consumers, this means more inconvenience, longer trips for service, and fewer opportunities for face-to-face support. For the brand, it means slower growth and missed chances to win customer loyalty. The established dealer network already offers:
- State-of-the-art showrooms and service bays
- Certified and trained technicians
- Local, ongoing customer relationships
- Coverage in underserved markets across the U.S.
Recent data from states like Colorado show the power of franchised dealerships in driving EV sales. In 2024, EV models sold through franchised dealers saw market share double, while direct-to-consumer brands like Tesla saw their share shrink. Brands served by dealers Subaru, Nissan, Hyundai showed the strongest growth. Tesla’s hold on the market, once overwhelming, is fading fast as consumers turn to new options available through local dealers.
It’s a clear signal: franchised dealers are not just surviving they’re thriving, and they’re vital to the success of new EV brands.
Incorporating Scout into the existing VW dealer network is a win-win solution. It preserves investments in facilities and staff, builds on trusted customer relationships, and delivers fast, reliable access to new vehicles. It also ensures that communities of all sizes can participate in the EV revolution not just those in big cities. Skipping the dealer network, on the other hand, risks higher costs, frustrated shoppers and slower progress for both Scout and Volkswagen.
While direct sales may seem efficient from a corporate perspective, in reality, it leaves too many people and communities behind. For the long-term success of the Scout brand, and for the future of the EV market in America, leveraging the power of local dealerships is the smart, strategic path forward.
