On December 20, 2024, the California New Car Dealers Association (CNCDA) issued a cease-and-desist letter to Volkswagen (VW) and its affiliate, Scout Motors. This action followed VW’s announcement to sell vehicles directly to California consumers under the Scout brand, which the CNCDA claims violates state law. The CNCDA, which represents nearly 1,200 dealerships across California, including more than 50 VW dealerships, is committed to preserving the franchise system and protecting consumers by ensuring that business practices are legal and ethical. The cease-and-desist letter points out Volkswagen's violation of California Vehicle Code section 11713.3(o), which prohibits manufacturers from competing against their own...