Big Carmakers Aim to Take a Page From Tesla and Sell EVs Online
Legacy automakers, including Volkswagen and Honda, are beginning to experiment with direct-to-consumer sales models. The goal? To streamline the process of purchasing a $60,000 vehicle, making it as simple as buying a T-shirt.
When Marc White, a second-generation car dealer, learned that a new Volkswagen AG electric-vehicle line was slated for production in his home state of South Carolina, he hoped to be among the first to sell the cars. He proposed building a $10 million showroom on prime local property at his own expense to showcase the models, but his offer was rejected.
White discovered VW plans to bypass the dealerships – like his – and sell its Scout Motors pickups and SUVs directly to consumers when they launch in 2027. “They obviously feel like they can do it better, or maybe less expensive,” says White, 45. His family has been selling VW automobiles for over 60 years, starting with White’s late father, Steve, under whose name the dealership group still operates. Even his teenage son, who just received his driver’s license, is eager to join the family business.
White is pushing back against VW’s plans, testifying before his state legislature that direct-to-consumer sales could jeopardize the livelihoods of his 150 employees.
