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Tesla’s New Cheaper Wraps Sound Good Until You Find Out They’re Just Vinyl

  • Tesla replaced premium paint protection wraps with cheaper vinyl wraps that offer less durability.
  • Customers can have their Model 3 or Model Y wrapped for $4,000, and the Cybertruck for $4,500.
  • The company’s wrapping services are limited to just five U.S. locations, all on the West Coast.

Tesla has made its colorful wrap options for the Model 3, Model Y, and Cybertruck significantly cheaper in the States, and it now seems poised to offer a wider range of color choices too. But, because this is Tesla we’re talking about, after all, we can’t have nice things without a catch. The company has ditched its pricier, higher-quality Paint Protection Film (PPF) wraps in favor of the more basic (read: cheaper) vinyl wraps.

Cost Savings and Trade-Offs

As pointed out by Notateslaapp, Tesla’s previous PPF wraps were thick, durable, and actually protected your car’s paint. But protection costs money (and time), so Tesla decided to cut a corner, roll out vinyl wraps, and slap a “more affordable” sticker on the move. Vinyl wraps are thinner and easier to apply, which makes them faster and cheaper to install. The trade-off is the reduced durability and protection compared to PPF.

If you own an eligible Tesla and want to make it stand out for the holiday season, now could be a good time to do so. However, you’ll need to live in California or Washington, as only certain service centers are participating in the program.

Tesla launched its wrap service last year, initially limited to Model 3 and Model Y. At that time, PPF wraps were priced between $7,500 and $8,000. The service then expanded to include the Cybertruck, which offered five color options, priced between $6,000 and $6,500 for PPF wraps.

Read: Tesla Unveils 3 New Cybetruck Wraps, But There’s A Catch

Now, Tesla has updated its website to confirm that the cheaper, lower-quality vinyl wraps (of course, they don’t say it like that) are now available for the Model 3 and Model Y at $4,000, with wraps for the Cybertruck priced at $4,500. Interestingly, Tesla is no longer listing a specific selection of colors. Instead, after customers make an online purchase for a wrap, a Tesla Advisor will arrange an appointment where they can choose their preferred color and texture. This likely means a wider array of options will be available. Tesla mentions that all wraps are made from polyvinyl chloride and come in matte, satin, and gloss finishes.

 Tesla’s New Cheaper Wraps Sound Good Until You Find Out They’re Just Vinyl

Limited Availability of Tesla Service Centers

Unfortunately, there are just five Tesla Service Centers in the US providing wrapping services. Four are in California, including Costa Mesa, Oceanside, Santa Clara, and West Covina, and the other one is in Seattle, Washington.

Tesla says that the wrap installation typically takes a few days and customers may be provided with a loaner vehicle. All wraps from Tesla include a 12-month warranty for any installation defects and a five-year warranty for material defects.

Interested buyers should be aware that Tesla does not wrap door jambs as standard and this is only available for an additional cost. Additionally, Tesla will inspect the paint before fitting the wrap and may direct buyers to have a complete paint correction performed to ensure the surface is absolutely perfect.

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VW Dealer Can’t Fix ID.4 After 7 Months In The Shop, Still Waiting On Tools

  • A Volkswagen ID.4 owner says the automaker and his local dealer are letting him down. 
  • After buying the car, it’s sat in a service repair shop for over seven months. 
  • The dealer claims that VW itself hasn’t supplied the tools needed to change the gearbox. 

From an observer’s perspective, it’s clear that the Volkswagen ID.4 is far from perfect as it’s had several issues since its launch. At times, the problems are relatively trivial. However, some of them are more serious, such as when the doors open on their own because they can’t handle water on them. What we don’t often get is an inside look at life with such a car. Now, one man in Florida is telling his troubled story with an ID.4. 

Josh Cowan is a die-hard Volkswagen fan. He’s owned three Jettas, a Tiguan, and an Atlas. His wife’s very first car was a Volkswagen. It made sense to him to get an ID.4 when it came time to buy a new car for his family. What he didn’t know was that he’d end up right back in a loaner Tiguan for over seven months. 

More: VW Bringing Back True ‘Volkswagen’ Looks For Facelifted ID.3 And ID.4

Not long after taking delivery of his low-mileage but used ID.4 from Carmax, he noticed an airbag light on. He took it to the dealer and mentioned to them that he also heard a strange noise periodically. “There was a clunking sound that happened every time you kind of turned a corner and accelerated,” Cowan said to WFTV. 

First, the dealer thought the issue was a motor mount. When that didn’t work, they told him that the ID.4 needed a new transmission. Now, over seven months later, the ID.4 is still sitting at the shop. What’s taking so long? According to the dealer, Volkswagen itself hasn’t supplied it with the tools it needs to swap the gearbox out. 

“So, there it sits. Now it’s been seven and a half months. There are two additional recalls on that car that have happened in the meantime that they don’t have fixes for,” Cowan said. Interestingly, Volkswagen seems poised to wipe its hands of all liability as they offered the Cowans $3,000.

Josh believes that if he accepts it, he’ll release VW from future claims. With that in mind, Josh says “It’s frustrating, and we feel really let down by Volkswagen.” The only thing he can do at this point is wait on the dealer and the automaker to make things right. 

Image Credit: WFTV

Dodge Dealers Set To Cash In Big On New Charger Daytona EV Profit Margins

  • Dodge dealers are in line to make a killing on every new Charger Daytona EV they sell, a new report says.
  • Cars Direct claims dealers could pocket $3,246 based on the difference between the invoice price and MSRP.
  • Markups could balloon that figure – one dealer told reporters Daytonas would sell for at least $10k over list price.

Dodge dealers are set for some big paydays if they can persuade drivers to take a new Charger EV home. A new report claims retailers could bank thousands of dollars on every 2024 / 2025 Charger Daytona they sell, and that’s before the inevitable markups enter the conversation. For dealerships, it’s a windfall. For buyers? Well, that depends on how much they’re willing to shell out for Dodge’s electrified muscle revolution.

According to Cars Direct, which analyzed the difference between dealers’ internal Stellantis order guide invoice pricing (the price the dealer pays Dodge) and the MSRP for the same vehicles and found high-spec Daytonas could generate over $3,200 for the retailer.

Related: Dodge Charger Daytona EV Shows Its New Colors As It Gets 0% Financing Deal

The investigation revealed the base Charger Daytona has a before-options MSRP of $57,995, but an invoice price of $55,096, meaning the dealer will pocket $2,899 from a straight cash sale. That compares with an invoice-to-MSRP difference of just $607 on a 2023 Challenger SXT, which sounds very low, although dealers also get deals from automakers and may often pay below invoice for a car.

Things get even more lucrative if the buyer is looking at the sportier Scat Pack. The official invoice price for one of those is $61,746, so if the dealer sells at MSRP, he could bank $3,246. But we’re talking about one of the most hotly anticipated American performance cars of the year. The dealers likely aren’t going to be selling at MSRP. One dealer in Scottsdale, AZ, told Cars Direct Daytonas will be slapped with a markup of at least $10k.

Markups Meet EV Transparency

The report suggests Dodge might have purposely built dealer profit into the Charger to avoid markups being applied, and because EVs tend to have more transparent prices. But if other dealers have the same attitude as the Arizona one in the story, the strategy has not worked.

 Dodge Dealers Set To Cash In Big On New Charger Daytona EV Profit Margins
Photo Stephen Rivers / Carscoops

Whether the Daytona EV can handle those kind of markups once the initial rush of excitement is over remains to be seen. Dodge might bring forward the introduction of the combustion-powered, six-cylinder Charger because that’s where customers are indicating they want to spend their money.

But presuming it is the electric version of the Charger you want and you can find a dealer who isn’t going to fleece you with a crazy markup, there are some good deals around that make it a tempting package. Dodge is offering $549 per month lease deals and giving buyers 0 percent APR for up to 72 months.

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VW ID. Buzz Markups Hit $35,000 As Greedy Dealers Run Amuck

  • Volkswagen dealers have embraced ID. Buzz markups and one is seeking $35,000 over MSRP.
  • Other dealers are asking $5,000 to $10,000 over sticker, so it pays to shop around.
  • The ID. Buzz starts at $59,995 and has 282 hp as well as 234 miles of range.

The dam has burst on ID. Buzz markups as numerous dealers are now advertising the van over MSRP. The most egregious is Volkswagen San Bernardino, which has two 1st Editions listed for $107,668. Both carry a MSRP of $72,668 and that means they have a $35,000 markup.

That’s a ridiculous number as the ID. Buzz starts at $59,995. This means the markup is 58% of the price of the van itself.

Review: The VW ID. Buzz Is The Coolest Minivan On The Block, But There’s A Catch

Unfortunately, Volkswagen San Bernardino isn’t the only rotten apple as Maryland’s King Volkswagen has added a $10,000 markup to their 1st Edition. This means they’re looking to get $81,895 instead of the MSRP of $71,895.  

Illinois’ Larry Roesch Volkswagen has a slightly more modest $5,000 markup, which boosts the price of their van to $77,300. It’s a similar story at Emich Volkswagen of Boulder and Denver, which appears to have sold several vans with $5,000 markups.

 VW ID. Buzz Markups Hit $35,000 As Greedy Dealers Run Amuck

One of the more interesting models up for sale is a $76,295 ID. Buzz Pro S from Napleton’s Auto Park of Urbana, Illinois. While the Pro S starts at $59,995 this one features a Mystery Machine wrap from Scooby Doo. Is it worth the price of admission? Probably not, but at least you’re getting something unique for the elevated price tag.

Volkswagen of America began ID. Buzz deliveries last month and was initially able to keep a lid on markups – or at least blatantly advertised ones. Now that more dealers have vans in stock, markups are a common sight. This is interesting to note as Volkswagen warned against them.

Speaking of which, greedy dealers are helping to prove Volkswagen’s case for Scout’s direct to consumer model. Dealers were up in arms about this, but the massive markups show they can’t be trusted.

 VW ID. Buzz Markups Hit $35,000 As Greedy Dealers Run Amuck

Dodge Charger Daytona EV Shows Its New Colors As It Gets 0% Financing Deal

  • The deal is only available to buyers in the Northeast, Southern, and Central US.
  • Dodge has confirmed the new EV will be offered with the full $7,500 tax credit when leased.

While the jury is still out on whether Dodge jumped the gun and launched an all-electric muscle car before the market was ready, Stellantis has unveiled the four colors available at launch: Peelout (orange), Diamond Black, White Knuckle, and Bludicrous. Previously, it was believed that only three colors—Diamond Black, Triple Nickel, and White Knuckle—would be offered when the new Charger Daytona went on sale, but it seems plans have changed.

At the same time, Stellantis announced a new financing deal that could tempt power-hungry enthusiasts to get behind the wheel of the new electric muscle car rather than waiting for next summer (or fall) when the ICE-powered version with a turbocharged straight-six engine is expected to reach dealers.

Read: Dodge Tries To Woo Charger Daytona EV Lessees With Extra $1,000 Loyalty Discount

Buyers in the Northeast, Southern, and Central US can pick up the keys to the new EV with 0% financing for up to 72 months, a bulletin recently sent to dealers reveals. This promo will only run through until December 2, is a standalone offer that can’t be combined with other incentives, and only people with above-average credit will qualify. Moreover, it’s unclear whether those living on the West Coast will be able to take advantage of that deal.

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However, it’s worth noting that Dodge has yet to confirm if the Charger Daytona is eligible for the $7,500 EV tax credit when purchased. What we do know is that it’s eligible for the full credit when leased, meaning this could be a better option for some.

Additionally, Stellantis announced in October that 2024 Charger Daytona models qualify for a $1,000 loyalty discount for customers returning a leased Dodge vehicle. As Cars Direct points out, the automaker has yet to disclose how much it will cost to lease the electric muscle car.

More: Dodge Charger Daytona Is Already The EV To Beat For Resale Values

Those interested in purchasing the Dodge outright will need to shell out $61,590 for the entry-level R/T model. This version delivers 496 hp and 404 lb-ft (548 Nm) of torque—plenty of muscle for most buyers.

For those seeking even more power, the Daytona Charger is also offered in the Scat Pack configuration, which boosts output to 670 hp and 627 lb-ft (850 Nm). Starting at $75,185, it’s a hefty price tag, but the performance backs it up. The Scat Pack rockets to 60 mph (96 km/h) in just 3.3 seconds and can tear through the quarter-mile in 11.5 seconds.

Unfortunately, buyers will have to wait a bit longer to get behind the wheel than originally anticipated as production of the EV had yet to begin as of last week.

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US Dealer Slaps $20,000 Markup On VW ID. Buzz

  • A salesman told a customer they’d need to pay “between $10k–20k over sticker.”
  • Fortunately, most dealerships appear to be honoring the ID. Buzz’s original MSRP.
  • Surprisingly, some dealerships are even offering discounts on the all-electric van.

When we first heard that Volkswagen would limit availability of the new ID. Buzz to just one or two units per dealer at launch in the States—gradually increasing allocation in 2025—it didn’t take a crystal ball to predict that a few stealerships might see dollar signs. While many seem to be playing nice for now, there are always those bad apples who just can’t resist squeezing a little extra juice out of a supply pinch.

At least one VW dealership in the U.S. is testing the waters by slapping a hefty premium on the ID.Buzz 1st Edition, with reports of markups reaching as high as $20,000. Others appear to be adding more modest premiums, but the pattern is still enough to draw some attention.

The $20K Sticker Shock

A Redditor recently shared a screenshot of a text exchange with a VW salesperson named “Mike.” While the dealership’s location wasn’t disclosed, the interaction painted a clear picture of pricing antics. In the exchange, Mike provided an image of the ID. Buzz 1st Edition’s window sticker, confirming it as a single-motor, rear-wheel-drive model with a base MSRP of $65,495. Add in $1,500 for destination fees, a charging cable, a roadside assistance kit, and an auto-dimming rearview mirror, and the total climbs to $68,083. But that wasn’t the end of it.

Review: VW ID.Buzz Is The Coolest Minivan On The Block, But There’s A Catch

 US Dealer Slaps $20,000 Markup On VW ID. Buzz

The salesman went on to state that the dealership was asking “somewhere between $10k–20k over sticker” for the electric van. The customer pushed back, replying, “Volkswagen specifically stated that that’s not allowed.” Mike’s response? A curt “Thank you for your time,” effectively ending the conversation.

The exchange is a stark reminder of how some dealerships try to take advantage of the hype over a new model and how desperate they often are to maximize profits, even if it means going against the policies of car manufacturers. It’s not the first time a vehicle launch has been met with such tactics, and unfortunately, it won’t be the last.

 US Dealer Slaps $20,000 Markup On VW ID. Buzz
Photo No_Excuses_Yesterday / Reddit

This isn’t the only ID.Buzz 1st Edition hit with a markup. Emich VW in Denver, Colorado, is selling a 2025 model with all-wheel drive for $77,300, a $5,000 markup over its $72,300 MSRP. However, there’s also encouraging news for buyers willing to shop around.

Northampton Volkswagen in Massachusetts is selling an ID.Buzz 1st Edition with all-wheel drive for $69,493, representing a $2,934 discount from its MSRP. Portsmouth Volkswagen in Greenland, New Hampshire, also has one in stock with an asking price of $70,295, a $2,452 discount.

Shop Smart

The disparity in pricing for the ID. Buzz highlights the wild variations that can occur during a high-profile vehicle launch. While some dealerships can’t resist tacking on premiums, others are sticking to MSRP—or even offering discounts. For buyers, the key takeaway is clear: shop around, compare prices, and don’t be afraid to walk away and wait if needed. With supply set to improve in 2025, patience might just save you thousands.

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VW Group’s Cupra Talking To Penske About 2030 US Launch With ICE, EVs

  • Cupra has begun preliminary talks with the Penske dealer group about launching in America.
  • The sporty VW-owned brand wants to be on sale in key US states before the end of the decade.
  • Cupra is expected to offer ICE, PHEV, and fully electric powertrains in next-generation SUVs and crossovers.

Cupra’s dream of launching in the US just came a little closer with the news that the VW-owned Spanish brand has opened first-stage talks with the Penske dealer group.

Though no concrete deal has been announced, the fact that Cupra is even talking about the two companies getting around a table indicates discussions are probably more advanced than it’s letting on. No detailed timeframe was given for Cupra’s US debut but the automaker reiterated its previous stance, saying it was targeting an American debut by the end of the decade.

Related: It’s Official, Cupra Coming To US With 2 Electric Crossovers

But that debut will see the brand appear “in key states aligned with the brand,” rather than nationwide. Penske Automotive already has a solid relationship with the Volkswagen Group so it makes for an obvious choice to help Cupra get a foothold in a market where 99 percent of drivers have never heard of it.

“Cupra’s ambition is to be a truly global brand and expanding into the United States represents one of the greatest milestones on our journey,” said the automaker’s CEO, Wayne Griffiths. “We have great respect for the U.S. market, recognizing that a strong distribution and retail strategy is essential for success.”

Cupra is expected to bring combustion, plug-in hybrid, and fully electric models to North America, though the cars themselves will be a generation on from the vehicles currently sold in European and Australian dealerships.

 VW Group’s Cupra Talking To Penske About 2030 US Launch With ICE, EVs

In March of this year, Griffiths confirmed that Cupra would kick off its American adventure with an electric version of the next Formentor crossover and also a bigger electric crossover SUV, that second model slated for production at VW facilities “in the North American region, including Mexico.”

There was no mention of non-EV powertrains back then, but it’s no surprise that Cupra is now talking about models with ICE elements given the American public’s disinterest in pure battery cars so far. Building an SUV in Mexico also looks potentially problematic now that Donald Trump  – who has vowed to apply high tariffs on Mexico-built cars – won the election.

Mercedes Offers Dealers $3,000 Per EV Sold, Will Buyers Get A Cut?

  • Mercedes-Benz dealerships in the US can receive up to $3,000 for each 2024MY EV they sell.
  • Generous incentives worth over $20,000 are also offered for some of the brand’s EVs.
  • It will be up to individual dealers to decide if they pass the savings on to customers.

Shoppers eyeing a new Mercedes-Benz EV may soon find themselves in a stronger negotiating position, thanks to a fresh dealership incentive program rolled out by the German automaker. Dubbed the ‘Q4 2024 EQ Sales Challenge’, the initiative runs through January 2, 2025, and rewards dealers $2,000 for each 2024-model-year electric vehicle sold—provided they meet monthly sales quotas.

Dealers hitting quarterly targets can unlock an additional $1,000 per unit sold raising the total to $3,000 and creating a potentially lucrative opportunity for those moving inventory swiftly.

Read: Mercedes-AMG Teases New Electric Super-SUV

As reported by Cars Direct, the program is designed to pad dealership margins across the United States, but it’s worth noting the savings won’t automatically trickle down to buyers. Whether or not customers see a slice of this incentive pie will hinge entirely on the generosity—or desperation—of individual dealers.

Still, Mercedes is already dangling significant offers to tempt buyers. For instance, the high-performance Mercedes-AMG EQS 53 is currently available with $7,500 in Lease Bonus Cash and a massive $15,000 Incentive Bonus.

Of course, those interested in picking up the keys to a new Mercedes EV, particularly those in the luxury segment, should be aware that many models experience eye-watering levels of depreciation. This phenomenon isn’t limited to Mercedes products and impacts many, if not most, EVs out there, but the depreciation experienced by some higher-end models is particularly shocking.

Earlier this year, a study found that on average, the Mercedes EQS loses 47.8% of its value just 12 months after purchase. Plenty of other high-end EVs lose value at an alarming rate, including the likes of the Jaguar I-Pace and Audi e-tron.

 Mercedes Offers Dealers $3,000 Per EV Sold, Will Buyers Get A Cut?

Looking ahead, the EQS itself is living on borrowed time. A facelift is in the works, but it’s not expected to survive into a second generation, as the German company will merge it and the S-Class into a single model line offered in both ICE and BEV guises. The electric version of the next S-Class will be underpinned by the MB.EA Large architecture while the ICE version will use the existing Modular Rear Architecture platform.

 Mercedes Offers Dealers $3,000 Per EV Sold, Will Buyers Get A Cut?

The Number Of Car Buyers Paying Over MSRP Has Plummeted

  • The number of mainstream buyers paying over sticker has dropped 7% in the past year.
  • Lower prices and increased inventory has made the car buying process more satisfying.
  • Porsche provides the best buying experience, while Chrysler the worst, according to the study.

America is a deeply divided country, but there’s one thing that unites all of us – hatred of car dealers. However, a new study suggests things are getting slightly better.

According to J.D. Power, overall customer satisfaction with purchasing a vehicle climbed from a score of 793 last year to 801 in 2024. That’s basically an 80% grade as scores are based on a 1,000 point scale.

More: Study Finds 25% Of Car Buyers Won’t Return To Dealership That Charged Above MSRP

So what’s behind the improvement? Pricing and inventory. The shortages and markups from the pandemic have largely subsided, meaning some of the power has shifted from dealers back to consumers.

Given these developments, it’s not surprising to learn the number of people paying over MSRP has dropped significantly. J.D. Power says 15% of mass market buyers paid over sticker last year, but that number dropped to 8% in 2024. For premium buyers, the number fell from 10% to 6%.

 The Number Of Car Buyers Paying Over MSRP Has Plummeted
Source J.D. Power

While everyone can get onboard with lower prices, dealers still have a lot of work to do in regards to personnel, paperwork, and delivery. It also appears the EV buying experience is significantly worse than that of an ICE-powered vehicle.

The buyer satisfaction score for mass market ICE-powered vehicles was 857, but just 822 for EVs. J.D. Power also noted a “similar pattern exists among buyers of premium vehicles.”

Part of this appears to be a lack of dealership employees knowledgeable about electric vehicles. However, even Tesla buyers had “markedly lower satisfaction with the effectiveness of the vehicle features explanation.”

 The Number Of Car Buyers Paying Over MSRP Has Plummeted
Source J.D. Power

Among premium brands, sales satisfaction was highest at Porsche. They were followed by Infiniti and Jaguar. Genesis got a dismal rating of 781, while Alfa Romeo was second to last with a significantly higher score of 810. That put them two points behind Mercedes and Lexus.

On the mainstream side of things, top honors went to Mini, Buick, and Subaru. Chrysler, Mitsubishi, and Toyota were the worst.

 The Number Of Car Buyers Paying Over MSRP Has Plummeted
Source J.D. Power

Cybertruck Owner Fixes Problem Tesla Dealer Couldn’t Solve With A $13 Amazon Part

  • A Cybertruck owner found a DIY answer to a problem Tesla service techs couldn’t seem to fix.
  • After a windshield replacement, his EV developed wind noise, and Tesla’s attempts to fix it failed.
  • A run of 9mm weather stripping eventually provided a solution at the low cost of $13.

A Cybertruck owner became so frustrated at Tesla’s inability to deal with a problem with his electric truck that he took matters into his own hands and fixed it with a $13 DIY part.

Jay Larson, an Arizona-based podiatrist, posted on his MyCybertruckLife X account about how he was moved to act after being disappointed with a Tesla’s dealers attempts to fix a wind noise issue on his pickup. The truck, which has been perfectly quiet when he first bought it, began making a high-pitching whistling noise after its bulletproof windshield was replaced due to a factory defect.

Related: Tesla Delays Cybertruck Range Extender Battery To “Mid-2025”

Larson was adamant that the Cybertruck hadn’t been making the noise before the screen swap so went back to his dealer in Tempe, Arizona expecting the technicians to put it right. They made one attempt, telling Larson the problem was gone, but he disagreed, so asked them to take another look.

This time they told him that the noise was normal for a Cybertruck and that they couldn’t replicate the sound he was complaining about even at highway speeds. And for those reasons they said there was no available fix despite Larson insisting that it was fine with the original windshield. A classic case of “they all do that, sir.”

 Cybertruck Owner Fixes Problem Tesla Dealer Couldn’t Solve With A $13 Amazon Part

Not happy with that answer and still irritated by the wind whistle, Larson began casting around for his own solution. And he found it on Amazon, where he purchased a roll of 9 mm silicone weather stripping that perfectly fitted the gap at the top of the windshield. He removed some of the backing from the adhesive strip, but not all of it, saying that the weather seal was so snug it didn’t need much adhesive. He also had a hunch that it might have been trickier to fit if all of the adhesive surface had been exposed.

Larson says the truck is now whisper-quiet, even at 90 mph (145 km/h), and cost him only $12.99 to fix. But he shouldn’t have had to spend a penny.

Anyone else have a high pitching wind noise in their Cybertruck?? Tesla service center in Tempe AZ said it was normal but I didn’t have the noise before they replaced my windshield so after 2 trips to the service center with no improvement I fixed it myself. @elonmusk @Teslapic.twitter.com/1rMnoFXRqT

— MyCybertruckLife (@jaylarsondpm) October 24, 2024

Image credits: Amazon, Jay Larson (@jaylarsondpm)

VW Dealers And NADA Will Fight Scout Motors In Court Over Direct Sales

  • VW insisted Scout is an independent brand, despite being backed by the conglomerate.
  • The National Automobile Dealers Association is ready to challenge Scout in court.
  • Scout has decided against using VW’s huge network of dealers to sell its models.

Scout Motors infuriated VW dealers across the United States last week when it confirmed that the upcoming Terra and Traveler will be available via a direct-sale model rather than through existing dealerships. However, state dealer associations and the National Automobile Dealers Association (NADA) are already fighting back and looking for ways to block the revived brand’s hotly contested plan.

While Tesla was a trailblazer for direct-to-customer sales in the US, it faced many legal hurdles in skirting regulations designed to protect franchised dealerships. Scout differs from Tesla in that it’s not a true startup and is owned by the VW Group. Its affiliation with the German car manufacturer may complicate its ability to sell vehicles without involving dealers, according to Richard Sox, managing partner at Bass Sox Mercer law firm.

Read: VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers

“In the vast majority of states, the OEMs are not permitted to sell direct or compete with their dealers,” Sox told Auto News. “There are some exceptions to that, but those exceptions generally relate to the non-legacy OEMs who do not have and have never had a dealer network, i.e., Tesla. They’re affiliated with Scout, they have ownership. They have potentially some control. It certainly complicates Scout’s ability to sell direct in those particular states that would otherwise allow a manufacturer that is completely separate from a legacy OEM to sell direct.”

Scout has been eager to declare its independence since launching. The company plans to establish dedicated retail spaces across the country, allowing shoppers to place orders online. Scout will also manage all production and maintenance of its vehicles.

 VW Dealers And NADA Will Fight Scout Motors In Court Over Direct Sales

The chairman of Pohanka Automotive Group, Geoffrey Pohanka, has rejected the claim that Scout is independent of VW, telling Auto News “it’s the same”. He added that “VW has worked hard to reestablish itself in the United States, and they’re very sincere about that. This is contradictory to all the efforts they’ve made to reinvigorate the brand with new models.”

NADA’s chief executive, Mike Stanton, stated that the association is ready to challenge Scout “in courthouses and statehouses across the country.” While it remains unclear what legal route NADA will pursue, Stanton noted that “everything’s on the table right now.” He predicts that Scout’s plans to manage every aspect of the ownership experience through its app “will fail.”

Read: These Are The New Scout Terra Truck And Traveler SUV

University of Michigan Law School professor Daniel Crane believes dealer associations may first pick states where they have the strongest standing before beginning the legal battles. Richard Sox added that his law firm has already started working with 10 state dealer associations and is looking for the best ways to push back against the direct-to-consumer sales strategy.

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VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers

  • Scout’s direct-to-consumer model bypasses traditional VW dealerships, frustrating dealers and sparking potential legal challenges nationwide.
  • Established as an independent company, Scout avoids state franchise laws that would otherwise require dealership involvement.
  • The new Terra and Traveler are expected to begin production in the U.S. in 2027, with prices for both models starting at under $60,000.

VW dealerships in the United States hoping to get a piece of the action with the new Scout Terra pickup and Traveler SUV are out of luck. The revived brand has confirmed that these models will be sold directly to customers, bypassing the traditional dealership network.

For the past few years, VW’s leadership has been debating the best way to market vehicles from its American-based startup. Dealerships had suspected as early as May 2022 that Scout might adopt a direct sales model, well before the new models were officially unveiled. VW offered them no assurances that they’d be included in the sales process, leaving many dealers bracing for disappointment.

Read: These Are The New Scout Terra Truck And Traveler SUV

While speaking about the new Terra and Traveler at the presentation, Scout chief executive Scott Keogh confirmed that the company will indeed adopt a direct-to-consumer sales model.

Dealerships Prepare for a Legal Battle

Unsurprisingly, this hasn’t gone down well with existing VW dealers. Backed by the National Automobile Dealers Association and the Automotive Trade Association Executives, they’re reportedly gearing up to pursue legal action in an attempt to force Scout to reconsider its direct-to-consumer strategy, Auto News reports.

“Assuming they take this other path, let’s face it, there’s going to be challenges and problems for them virtually everywhere across the country,” said John Devlin, the 2024 chairman of the Automotive Trade Association Executives and CEO of the Pennsylvania Automotive Association. “My counterparts around the country are not just going to roll over.”

Scout’s Independence Gives It Flexibility

The problem for VW dealers is that Scout has been established as an independent company, a move that clears the way for a direct-to-consumer model without conflicting with VW’s franchise dealer network.

“Because of the way the franchise laws are in many states, if this were to be a Volkswagen company, it would be forced to not compete against Volkswagen dealerships,” Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told Auto News. “But as a standalone company, they are working to get around requiring franchise dealers, period, to carry the Scouts.”

Scout Motors is looking to establish a one-to-one relationship with its customers, directly offering reservations, sales, delivery, and servicing. It adds shoppers will know exactly what they’re paying for with “full price transparency,” and says “vehicle purchase transactions will be completed in minutes.”

 VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers

Interested buyers will be able to see Terra and Traveler models at dedicated retail spaces across the US. Test drives will also be offered at these sites. Scout Workshops are also being established but the firm notes approximately 80% of repair types can be completed outside of a Scout Workshop, “whether in a driveway or while adventuring.”

Reservations Open, Production Planned for 2027

Scout has already started accepting reservations for the two models, requiring a $100 reservation fee, which is fully refundable. Prices for both the Traveler and Terra will start at under $60,000 before incentives, and production will begin at the Scout Motors Production Center near Columbia, South Carolina, in 2027.

Battery-electric and range-extender powertrains will be offered. Fully electric models will use two motors, featuring an 800-volt electrical architecture, and offering up to 350 miles (563 km) of range. A gas range extender with a small engine designed to recharge the high-voltage battery is also in the works. This model will have a range of more than 500 miles (805 km).

 VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers

Stellantis Could Cut ICE Production And Raise Prices To Meet EU Emissions Targets

  • The company’s EVs must account for 24% of total vehicle sales if it wants to meet 2025 targets.
  • Stellantis could slow the production of some combustion models to reduce sales.
  • Jean-Philippe Imparato has also suggested raising prices of ICE models to favor its EVs.

Stellantis is looking to cut production of some of its internal combustion-powered models to comply with 2025 EU emissions targets. This comes after chief executive Carlos Tavares recently revealed the firm opposes any delay in changes to the rules and says it will comply with them and won’t need to pay fines to do so.

Newly-appointed European chief operating officer Jean-Philippe Imparato has revealed that Stellantis must double its EV share next year to 24% of total vehicles if it wants to meet 2025 targets. The other option is to reduce production of ICE models if demand for their EVs doesn’t increase.

Read: Stellantis Selling Arizona Proving Grounds As Cost Cuts Continue

Updated EU rules come into effect on January 1 and will set an overall fleet CO2 emissions target of 95 grams per kilometer, a fall from the 106.6 g/km rule enforced since 2023. If an automaker misses the target, they will face fines of €95 per excess gram per vehicle. Imparato told Auto News that production cuts for the firm’s ICE models could start as early as November 1, confirming that his “first task is to align production for vehicles sold in the first quarter of 2025,” by the first week of November.

According to Imparato, Stellantis has several ways it can attempt to boost EV sales. For example, it will increase dealer incentives on EVs, providing rewards across the entire distribution chain, including zone managers and salespeople. The carmaking giant may also look to increase the prices of its ICE models “on a flexible basis, by model, brand, and market,” in an attempt to encourage shoppers to consider an EV.

 Stellantis Could Cut ICE Production And Raise Prices To Meet EU Emissions Targets

There’s more Stellantis can do to help dealers. Many dealers have recently returned EVs from lease agreements in 2021 and 2022, and Imparato says the brand can help dealers with their residuals. Additionally, the executive says Stellantis can look to leverage the long-term value of EVs and effectively sell an electric model three times – once through an initial lease and then two more leases as a used vehicle.

Leapmotor should also help Stellantis meet emissions targets. The carmaker purchased a 51% controlling stake in the Chinese brand’s international arm, and its sales will count in the group’s overall emissions figures.

 Stellantis Could Cut ICE Production And Raise Prices To Meet EU Emissions Targets

Ford Gives Dealers Up To $22,500 To Push F-150 Lightning Sales

  • Ford dealers are being encouraged to order F-150 Lightning models from its distribution facilities.
  • Thanks to the incentives, some dealers may be encouraged to offer customers better prices.
  • Dealers will receive payments for every F-150 Lightning XLT, Flash, Lariat, or Platinum they order.

Ford dealerships across the U.S. stand to pocket up to $22,500 in bonuses for 2024 F-150 Lightning models ordered through one of the automaker’s Rapid Replenishment Centers (RRCs). These regional hubs act as distribution points, designed to help dealers cut back on keeping a glut of EVs in their showrooms.

The bonus program was launched on October 15 and will run through until November 15. Dealers will be paid $1,000 for each F-150 Lightning XLT, Flash, Lariat, or Platinum model they order, up to a maximum of nine units. The incentive sweetens to $1,500 per truck for those placing orders of 10 to 15 vehicles. A dealer hitting the top bracket with 15 trucks stands to collect the full $22,500—effectively rewarding those who go all-in on Lightning stock.

Read: F-150 Sales Slump Spurs Ford’s Controversial Dealer Incentive Plan

A memo sent to dealers stated the program is designed to “further test the logistics and efficiencies of RRCs and to increase RRC engagement.” The subtext here? Ford’s making a play to bolster the performance of its RRC network, a critical element in smoothing the rollout of its electric future, while dangling a hefty carrot in front of dealerships.

It’s too early to say how the program may impact buyers. Cars Direct notes it’s possible some dealers may be encouraged to offer better prices and leasing deals for the F-150 Lightning, thanks to the bonuses and reduce the need to stock in showrooms. However, some shoppers may not like the idea of purchasing an F-150 Lightning if they can’t see it in the flesh at a dealership lot, and instead, it has to be ordered from one of the distribution centers.

 Ford Gives Dealers Up To $22,500 To Push F-150 Lightning Sales

Ford had sold 22,807 examples of the F-150 Lightning through September this year, an 86% increase compared to last year. In a bid to further drive up sales of the F-150 Lightning, as well as the Mustang Mach-E and E-Transit, Ford recently announced it will offer buyers and lessees a free Ford Charge Station Pro bidirectional charger worth $1,310.

Of course, this isn’t Ford’s first rodeo when it comes to greasing the wheels for dealers. Earlier this year, the automaker introduced “stair-step incentives,” where dealers could receive $750 per truck for hitting sales targets and $1,500 for surpassing them. The latest incentive scheme is just another page in Ford’s playbook to push its electric ambitions, even if it means stepping on a few traditional toes along the way.

 Ford Gives Dealers Up To $22,500 To Push F-150 Lightning Sales
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