THIS Automaker Wants to Sell DIRECT TO CONSUMER & Dealers Are PISSED | Episode 1005
About this episode
Volkswagen's push to sell directly to consumers through its new entity, Scout Motors, has sparked significant backlash from its dealer network. The episode dives into the complexities of direct-to-consumer sales in the automotive industry, highlighting the legal battles Volkswagen faces in various states and the historical reasons behind the franchise dealership model. The hosts discuss the implications for both consumers and dealers, as well as the potential for other manufacturers to follow suit. With insights on lobbying and market dynamics, this episode sheds light on a pivotal shift in automotive sales.
Caredge
"Hey, a friendly reminder, folks. Today's show is brought to you by caredge.com. If you're in the market to buy a car, you know someone who's in the market to buy a car, give them the resource that is caredge.com."
Caredge is a website that helps people find out how much cars really cost at dealerships. It also helps them negotiate a better price when they want to buy a car.
Caredge is a platform that assists car buyers in obtaining real prices from dealers and negotiating better deals. It aims to make the car buying process more transparent and less stressful.
Porsche
"...VW Audi and Porsche dealers in Colorado, Sue State over Scout dealer license..."
Porsche is a luxury car brand that makes fast and stylish cars, like the famous 911 sports car. They are part of the Volkswagen family of brands.
Porsche is a high-performance sports car manufacturer, also part of the Volkswagen Group. Known for models like the 911 and Cayenne, Porsche has a strong presence in both luxury and motorsport segments.
direct sales model
"...calling out the direct sales model. Let's level said here,..."
The direct sales model means that car companies sell their cars straight to buyers instead of going through car dealerships. This can cause problems with the dealers who usually sell those cars.
The direct sales model refers to a method where manufacturers sell vehicles directly to consumers, bypassing traditional dealerships. This approach can disrupt the established dealership network and lead to conflicts.
Scout Motors
"...they created an entity, a whole new company, Scout Motors, even though they own it, sort of kind of, and the money came from them..."
Scout Motors is a new car company that wants to sell cars directly to customers instead of using regular car dealerships. This is different from how most car companies usually operate.
Scout Motors is a new automotive company that has been created as a separate entity, although it is connected to larger automotive groups. They are focusing on a direct-to-consumer sales model, which is a shift from traditional dealership networks.
Audi
"...the Porsche Audi Volkswagen dealers are all screaming, well, no, you have a dealer network in place..."
Audi is another luxury car brand that makes high-quality vehicles. Their dealers are worried about new companies selling cars directly to people instead of through dealerships.
Audi is a luxury car brand that is part of the Volkswagen Group. The mention of Audi dealers along with Porsche and Volkswagen highlights the competitive landscape of the automotive market and the challenges posed by new sales models.
direct to consumer
"...when Volkswagen decides, hey, we have a new brand, we want to sell it direct to consumer?"
Direct to consumer means that a company sells its products straight to customers instead of going through stores or dealers. This can help save money and make buying easier.
Direct to consumer refers to a sales model where manufacturers sell their products directly to the end user, bypassing traditional retail channels like dealerships. This approach can lead to lower prices and more control over the customer experience.
Ford Model
"...h is also a little bit when Ford came out and did Ford model, what was it, Ford blue?"
The Ford Model T is an old car that was made a long time ago, and it's important because it helped many people buy cars for the first time. It changed how cars were made, making them cheaper and easier to get for regular folks.
The Ford Model T, produced from 1908 to 1927, is one of the most significant cars in automotive history as it revolutionized mass production techniques and made automobiles affordable for the average American. It is often credited with putting America on wheels and is a symbol of early automotive innovation.
VinFast
"And I'm even thinking, Dad, this is a brand not many people will know, Vinfast. Remember Vinfast was going to sell direct to consumers and then what did they end up doing?"
VinFast is a car company from Vietnam that makes electric cars. They started by trying to sell cars directly to people but then changed their plan to work with car dealerships instead.
VinFast is a Vietnamese automotive manufacturer that focuses on electric vehicles (EVs). They initially aimed to sell directly to consumers but later decided to partner with dealerships for distribution.
Tesla
"...those blue states that you see on the screen, those are states where only Tesla is allowed to sell direct to consumer..."
Tesla is a car company that makes electric cars. They sell their cars directly to people instead of using regular car dealerships.
Tesla is an American electric vehicle manufacturer known for its innovative approach to selling cars directly to consumers, bypassing traditional dealership models.
franchise dealer network
"...the franchise dealer body network out there of Volkswagen is upset."
A franchise dealer network is a group of car dealerships that sell cars from the same company. They work together with the car maker to sell and service vehicles.
A franchise dealer network consists of independently owned dealerships that sell vehicles from a specific manufacturer under a franchise agreement. These dealers are crucial for the manufacturer's sales and service operations.
Rivian
"...Rivian sponsors direct to consumer EV sales ballot measure with $4.6 million..."
Rivian is a new car company from the United States that makes electric trucks and SUVs. They are trying to change how people think about electric vehicles and focus on outdoor activities.
Rivian is an American electric vehicle manufacturer that focuses on producing electric trucks and SUVs. They are known for their innovative designs and technology aimed at outdoor and adventure enthusiasts.
original equipment manufacturer (OEM)
"...as a corporate entity, as an automaker, as an original equipment manufacturer and OEM. Here is the most"
An original equipment manufacturer (OEM) is a company that makes parts or products that are used in another company's products. In cars, it means the company that makes the car itself.
An original equipment manufacturer (OEM) refers to a company that produces parts and equipment that may be marketed by another manufacturer. In the automotive context, it typically refers to car manufacturers that produce vehicles and their components.
Volkswagen Id4
"...the ID4 is the slowest selling car in the United States of America for the past two months in a row."
The ID.4 is an electric SUV made by Volkswagen. It's designed to be environmentally friendly, but it's not selling very well in the United States right now.
The Volkswagen ID.4 is an all-electric compact SUV that is part of Volkswagen's ID family of electric vehicles. It aims to compete in the growing electric vehicle market but has faced slow sales in the U.S. market.
Lucid
"And so we'll see. I mean, look at Lucid. Oh, I mean, my God, you know, every year they say, oh, we're going to sell more vehicles..."
Lucid is a company that makes electric cars, focusing on high-end models. One of their popular cars is called the Lucid Air.
Lucid is an American automotive company that specializes in electric vehicles, known for its luxury electric sedan, the Lucid Air.
transparency in auto sales
"...want more efficient sales in the auto industry, more transparency, etc...."
Transparency in auto sales means that car buyers can see all the prices and fees clearly, so they know exactly what they are paying for without any surprises.
Transparency in auto sales refers to the clarity and openness of pricing, fees, and dealership practices, allowing consumers to make informed decisions without hidden costs. This concept is increasingly important in the automotive industry as consumers demand fair practices.
Dieselgate
"...We had Dieselgate. We had the fact that they are the slowest selling car in the United States right now..."
Dieselgate is a scandal where Volkswagen was caught cheating on tests that measured how much pollution their diesel cars produced. This caused a lot of trouble for the company.
Dieselgate refers to the emissions scandal involving Volkswagen, where the company was found to have installed software in diesel vehicles that manipulated emissions tests, leading to significant legal and financial repercussions.
car buying process
"...I absolutely hate the entire car buying process. I thought the Costco route would be better because the prices are supposedly prearranged..."
The car buying process is how people go about buying a car, including looking for options, talking to salespeople, and figuring out how to pay for it. It can be stressful because of the pressure from salespeople.
The car buying process refers to the steps involved in purchasing a vehicle, which typically includes researching, negotiating prices, financing, and completing paperwork. Many people find this process stressful due to high-pressure sales tactics and complex pricing structures.
haggling
"...Thinking about haggling with a guy who wants to bounce numbers off his manager in the back makes me hyperventilate..."
Haggling is when people try to negotiate a better price when buying something. In car buying, it means talking to the salesperson to lower the price, which can be uncomfortable for many people.
Haggling is the negotiation process where buyers and sellers discuss and agree on a price for a product, often involving back-and-forth communication to reach a mutually acceptable price. In car buying, haggling is common and can be stressful for many buyers.
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