The future of electric vehicles is being shaped right now by how brands enter the market—and the route they choose could spell success or setbacks for years. Volkswagen’s plan to launch the revived Scout as a direct-to-consumer EV brand is raising questions about its impact on buyers, local communities, dealers, and even VW itself. Here’s a close look at why bypassing the traditional dealer network isn’t just risky, but counterproductive for all involved.
The Missed Opportunity: Ignoring an Established Dealer Network
Volkswagen Group’s decision to exclude its 635-strong U.S. dealership network from Scout sales defies logic when the infrastructure is already in place. These dealers have invested heavily in modern showrooms, certified service centers, and parts inventories—all backed by trained staff and decades of customer trust. Instead, VW intends to start from scratch, mirroring the direct-sales model of Tesla, Rivian, and Lucid. But the real-world results of those brands reveal a model that leaves out large swathes of the country.
The Real Costs of Going Direct
Establishing new sales and service centers nationwide is a daunting, costly task. Real estate, construction, and logistics hurdles are highest in major urban centers—the only places where most direct-sales brands even maintain a physical presence. That means consumers in suburban, midsize, and rural markets are left with fewer choices, less support, and longer drives for both sales and service. The absence of local support diminishes brand loyalty and hurts consumer satisfaction, which are vital for any new vehicle launch.
Dealerships: The Backbone of Automotive Reach and Support
Franchised dealerships aren’t just sales outlets. They are pillars in communities large and small, offering:
- Local access to sales and service for everyone, not just city dwellers.
- Trained, certified technicians and real relationships with buyers.
- Ongoing support that builds brand loyalty and keeps vehicles on the road.
- Immediate market reach for new models—without costly, time-consuming infrastructure buildouts.
Rolling Scout into existing VW dealerships could ensure a much faster, more cost-effective, and inclusive brand launch. Local dealers are already trusted, invested, and ready to sell electrified vehicles in every corner of the country.
Market Realities: Why Direct Sales Don’t Deliver for EVs
Recent data paints a clear picture. Franchised dealers are selling more electric vehicles every month, while Tesla’s share—the direct-sales pioneer—has dropped dramatically from a dominant 80–90% to just 39% in February. In Colorado, where EV adoption is among the nation’s highest, models sold through traditional dealers (like Nissan’s Ariya and Hyundai’s Ioniq 5) are surging, while Tesla’s growth has stalled.
The Numbers Tell the Story
- EVs sold by franchised dealers are increasing market share every month.
- Consumers benefit from more accessible, community-based options for purchase and support.
- Communities outside major urban centers gain access to the electric transition.
The Win-Win Solution: Leverage What Already Works
Scout’s launch via the existing VW dealer network would be a strategic win for everyone:
- Volkswagen protects and enhances its investment in dealerships.
- Dealers strengthen their customer base and relationships.
- Buyers enjoy better access, service, and satisfaction—no matter where they live.
- Communities get full participation in the EV revolution, not just urban elites.
Conclusion: A Direct-Sales Detour Hurts More Than It Helps
VW’s direct-sales experiment with Scout may appear innovative, but it risks undermining established advantages and leaving customers—and communities—behind. The proven franchise dealer system isn’t a relic of the past; it’s the key to building a stronger, more inclusive, and sustainable EV future for everyone.
