Scout Motors, a new brand under the Volkswagen Group, is facing lawsuits from VW and Audi dealers due to its plans to sell vehicles directly, which these dealers claim should have been offered to them. Additionally, Rivian, an electric vehicle manufacturer, argues against Ohio's law prohibiting manufacturers from selling cars directly while allowing services and rentals. Rivian's CEO has criticized these regulations as corrupt and designed to protect dealers, while stating that direct sale models are viewed as attempts to stifle competition and profit consolidation.
"Scout Motors, the new SUV brand from Volkswagen Group, has raised controversy with its intention to sell cars directly, leading to lawsuits from VW and Audi dealers..."
"Rivian argues that Ohio's law banning manufacturers from selling cars directly lacks legitimate interest, as other manufacturers can perform warranty service and sell through out-of-state dealerships..."
"Rivian's CEO RJ Scaringe criticized state-by-state sales regulations, describing them as corrupt efforts protecting established dealers from competition and limiting direct customer interactions..."
"The direct sale model is perceived by some as an effort to eliminate competition and concentrate profits within the established dealership system, hindering new entrants..."
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