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PR & News NADA Chariman Gary Gilchrist Letter over Volkswagen-Scout & Honda-Sony

Jeff Kershner

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Text: Like all of you, along with everyone at NADA, I am deeply frustrated by the recent news from Volkswagen/Scout and Honda/Sony that they intend to retail their new vehicles directly to consumers. NADA has spent the better part of two years working diligently to persuade Volkswagen and Honda against making the outrageous and misguided determination that attempting to sell their vehicles directly will be beneficial to them or their customers. Through countless outreach attempts, including multiple letters and emails, invitations to engage in discussion, and even a trip to Japan, NADA again and again presented to these OEMs the central fact of the issue: The franchise system works best for customers and automakers alike.


How long will they continue to succeed?
 
Whoa. I completely missed the Sony/Honda EV venture. My Honda inside sources didn't even mention anything about this.

I'm totally fine with niche EVs being direct to consumer. Do dealers really want a $100k Honda EV sitting on their lot for 400 days? Scout has potential for volume but I'll reserve judgement until I see a finalize product and price.
 

✨ AI Highlights

NADA Chairman Gary Gilchrist expressed frustration over Volkswagen-Scout and Honda-Sony's plans to sell vehicles directly to consumers, arguing that the franchise dealer system better serves both customers and automakers despite two years of industry outreach efforts. Responses from dealers showed mixed sentiment: one acknowledged that direct-to-consumer sales might make sense for niche, high-priced EVs that are difficult to move through traditional dealerships, while another commenter pivoted to discussing AI's broader impact on the industry. The thread reflects ongoing tension between legacy automakers entering new vehicle categories and dealers' concerns about preserving their retail role.

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