Big Carmakers Aim to Take a Page From Tesla and Sell EVs Online
Legacy automakers including VW and Honda are taking their first stab at direct-to-consumer sales that promise to make $60,000 purchases as easy as buying a T-shirt.
When second-generation car dealer Marc White learned a new Volkswagen AG electric-vehicle line was set to be produced in his home state of South Carolina, he hoped to be among the very first to start selling the cars. He approached the company, offering to build a $10 million showroom on a prime piece of local property at his own expense to showcase the models—and was turned down flat. That’s when White discovered VW plans to cut out the middlemen—like him—and sell its Scout Motors pickups and SUVs directly to consumers when they go on sale 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 more than 60 years, starting with Marc’s late father, Steve, under whose name the dealership group still operates; his teenage son, who only just got his driver’s license, is eager to sell cars there someday, too. So White is fighting back, testifying to the state legislature that allowing the direct-to-consumer sales could put the livelihoods of his 150 employees at risk.