by Scout Motors Opposes Franchise Laws
Scout Motors is calling on the US government to repeal automotive franchise laws, which the company believes limit competition. The manufacturer plans to sell its future models directly to customers but is facing legal obstacles.
Company’s Position
Blair Anderson, Vice President of Government and Regulatory Affairs at Scout, sent a letter to the Department of Justice, stating:
“We urge the Department of Justice and this administration to investigate these protectionist schemes and open the automotive industry to fair competition.”
The company believes that new manufacturers should not be forced to use a franchise model, especially when they do not require investments from dealers.
Volkswagen’s Influence
Scout is owned by the Volkswagen Group, which recently published a study on its contribution to the US economy:
- Supports over 164 thousand jobs
- Contributes to an economic turnover of $44 billion
- Increased the number of jobs by 30 thousand over the past 6 years
The issue of direct sales of automobiles by manufacturers remains controversial in many states. While some manufacturers, such as Tesla, have already gained the right to direct sales, traditional automakers continue to face resistance from dealer networks. This debate reflects a broader trend in the automotive industry, where manufacturers are trying to adapt to new sales models in the digital age.
