Today, the National Automobile Dealers Association (NADA) released the following statement by its President and CEO Mike Stanton:

"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. 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.

"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. 

"NADA and state dealer associations fully stand behind VW and Audi dealers that are being left behind by this decision, and are prepared and will challenge this and all attempts to sell direct in courthouses and statehouses across the country."