The National Automobile Dealers Association came out swinging after Volkswagen unit Scout Motors said it will sell its electric vehicles in the making directly to consumers, forgoing dealerships.

NADA President Mike Stanton said in a scathing statement Friday that Audi and VW dealers are “being left behind.

“VW AG’s decision to attempt to sell Scout vehicles direct to consumers and compete with its U.S. dealer partners is disappointing and misguided, and it will be challenged.”

Scout introduced its concept EVs this week, the Traveler SUV and the Terra pickup, saying it plans to start production on the models in 2027 at a plant it’s building in South Carolina. It will bypass dealerships in favor of the direct-sales model Tesla uses. Scout's website features a button to “Reserve your Scout vehicle today.”

Stanton angrily pointed out the unit's rebuff of NADA in its planning process. 

“Unfortunately, it’s also not terribly surprising, as VW AG CEO Oliver Blume and Scout CEO Scott Keogh have avoided engaging with or even responding to NADA for months,” he said.

He also pointed to a recent study that found dealership sales are most effective.

"Since VW AG signaled the reemergence of the Scout brand in the U.S., NADA has communicated very clearly on numerous occasions to their leadership that the franchise system is the best and most-efficient way to deliver the customer experience that today’s marketplace demands. This was recently reinforced by an independent study of the cost and value of new-car distribution by the consulting firm, Oliver Wyman, which concluded that utilizing franchise dealers is more cost-effective than a direct sales channel, and provides tremendous value to automakers and consumers alike.”

Stanton said NADA and state dealer associations “will challenge this and all attempts to sell direct in courthouses and statehouses across the country."

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