Come on man. If its totally different whg are VW dealers suing and not Honda dealers. Im sure you know they are the same people in most cases. . Typically one man will own 5 or 10 different dealership makes. . Why is this one man for example only suing VW?. Your arguement is like saying VW...
Well that would work. It would be expensive. But obviously super profitable if they can pull that off. It sure will be inteeesting to watch. Now some states passed in my opinion unconstitutional laws saying a car must be sold by a dealer. But thats an obvious pay to play law and Elon and the...
Last thing. Im not pro car dealer. But im not pro Lying or Fraud. If VW truly want to do this then buyout your deaLers. The cotracts are 5 years at most and require renewal by both parties
Tell it the judge. If you Believe that I have an amazing new crypto currency i can let you in the ground floor. You need to empathize with the dealers legal argument. We could all care less about the dealer but look at the legality and put yourself in their shoes. VW says Scout is no more VW...
True but Tesla is successful beyond imagination. They have zero interest in VW. Rivian risks major blow back doing business with a company known for being one of the most unenvironmentally friendly businesses in all of history. And keep in mind there are only 3 companies selling direct to...
A 50/50 joint venture sounds like ownership to me. No sense speculating I suppose.. This whole thing will be interesting to see play out. That and the faight of the franchise car dealer too. As this will give eveey manufacture an excellet blue brint and legal prescedent to do just that.
Some speculation from Chat GPT. . Always fun
The Real Battle: Direct-to-Consumer Sales & Franchise Law
The biggest legal fight won’t be with the DOJ, but with state dealer franchise laws.
• VW & Franchise Lawsuits: VW can’t sell direct-to-consumers under its main brands (VW, Audi, Porsche)...
It’s important for them to do this because then they can argue we have ownership in Rivian and Rivian has no dealers or franchise lawsuits. So why can’t we have ownership in Scout and pursue a direct to consumer model. My guess is the US regulators will block the investment. It could the...
Of course they can provided it doesn’t break their contract. So if they want to sell cheeseburgers, air planes, maybe even motorcycles. But not vehicles. I would have to see the franchise agreement. Can you see this from the dealer perspective. If I was a dealer I would think well VW is...
I’m fine with DTC. For anyone. Except those that have existing contracts with franchise dealers. These makes chose to franchise. So they would have to buy those dealers out or come to an agreement. I don’t care about China or any proposed business model. I’m merely stating it’s dirty pool...
Sure dealers make big money. Particularly Toyota and Lexus dealers. It is not uncommon for them to net for themselves after paying all bills, net profit of $500k per month. Some as high as $1 million per month. This naturally chaps the ass of every manufacturer. In essence if they went...
They are upset because they have a signed, binding, contractual agreement that they will never have to compete with the manufacturer. In other words they have a contract stating VW will not do the exact thing that it’s doing. Last I would never underestimate the poor planning and bad decision...
There is no friendly state in VW’s situation. There are a few unfriendly states to Tesla which is baffling to me. If the law is simply enforcing a contract between a manufacturer and franchisee, why is Tesla held to that standard when they have no contracts with franchisees?
Scout is the shell company for VW but it’s pretty easy to see through. And in all 50 states it is against franchise laws for a manufacturer to compete with their franchise dealers. Since Tesla never franchised they would not be competing with any small business owners that they sold a...