Volkswagen’s American Betrayal: How Woke Leadership and Bad Decisions Are Killing Dealers and the Brand

Folks, what we’re witnessing here isn’t just the slow unraveling of a company—it’s the dismantling of an American institution. Volkswagen, the brand that once symbolized freedom on the open road, has lost its way. Worse yet, they’re taking the American dealership with them, a cornerstone of our economy, our communities, and yes, our history.

CUPRA, Volkswagen’s newest brainchild, is planning its U.S. debut. But instead of relying on the network of small, family-owned dealers who built this industry, they’re cozying up to Penske Automotive Group in what can only be described as a deal to cut the little guy out entirely.

This, my friends, is a betrayal. And it didn’t start with CUPRA. This is a long, slow, orchestrated squeeze on the dealership model, the backbone of the auto industry, and Volkswagen is leading the charge.

The Dealer Network: The Real Heroes of American Auto

Let’s talk about dealers for a second—the people who are being pushed out of the equation. These aren’t faceless corporations. These are family-owned businesses. These are people who invest in their communities, sponsor the local Little League, and keep Main Street alive.

For decades, dealers have done the hard work of selling cars, servicing vehicles, and building trust with customers. They’ve weathered recessions, market shifts, and bad product decisions from automakers. And now? Now, the companies they’ve stood by are turning their backs on them.

This is more than bad business—it’s a slap in the face.

The Tesla Problem: Copying the Wrong Model

Now, I know what some of you are thinking. “But Wait, Tesla doesn’t use dealers, and they’re doing just fine!” Well, let me tell you something—Tesla built their business that way from day one. It’s a model that works for them because they designed it to work for them.

But Volkswagen? They’re trying to retrofit a Tesla-style model onto a legacy business that was built on partnerships with dealers. And let’s be honest—Tesla succeeds despite itself. For every customer who loves their Tesla, there’s another one stuck in a service nightmare because there’s no local dealer to fix their car.

Volkswagen isn’t Tesla. They’ve got decades of history, a complex product lineup, and a dealer network that has carried them through thick and thin. And now they want to throw that away? For what? A few extra bucks on the balance sheet?

Dieselgate: The Original Sin

Let’s not forget how we got here. Dieselgate wasn’t just a scandal—it was a betrayal of the American consumer. Volkswagen spent years lying to regulators and customers about their so-called “clean diesel” vehicles, and when the truth came out, the fallout was catastrophic.

Billions in fines. Lawsuits. A shattered reputation. And who was left to clean up the mess? The dealers. While executives in Wolfsburg wrote checks and made excuses, the dealers were the ones facing angry customers, trying to rebuild trust one sale at a time.

And now, after all that, Volkswagen wants to blame the dealers? Spare me.

The CUPRA-Penske Deal: A Trojan Horse for Change?

CUPRA’s pitch is straightforward: a modern, edgy car brand aimed at the young, design-savvy buyer. It’s the “cool kid” of the VW family, already making waves in Europe and now eyeing the U.S. But instead of rolling out the red carpet for a network of small dealers, VW is going straight to Penske Automotive Group.

This isn’t just a logistical convenience—it’s a blueprint. Fewer dealers mean fewer headaches for VW. No independent dealers asking tough questions, demanding marketing budgets, or questioning the product lineup. Just one massive partner who takes care of the dirty work.

If this sounds familiar, it’s because Tesla pioneered it. Direct-to-consumer sales. Control every aspect of the customer journey. Rivian followed suit, and now CUPRA is trying something similar—but with a corporate twist. Instead of direct-to-consumer, it’s direct-to-Penske. And if it works for CUPRA, what’s stopping VW from doing the same with their other brands? What’s stopping Ford, GM, or Toyota from following suit?

The Porsche Play: A Lesson in Dealer Pushback

This isn’t the first time VW Group has tried to reinvent the dealer model. Let me take you back to the 1980s when Porsche, the luxury sibling of VW, thought it could cut out its dealers entirely. The story is legendary in the industry.

Porsche’s leadership invited its dealer body to a meeting in Reno, Nevada. The message was simple: “We’re buying you out. Your services are no longer needed.” The plan? Centralize everything, streamline operations, and take full control of sales and distribution.

But Porsche underestimated its dealers. One Chicago dealer, refusing to roll over, filed a lawsuit that stopped the buyout in its tracks. The courts sided with the dealers, and Porsche had to shelve its plan. The Reno meeting became a cautionary tale, a reminder that you can’t simply erase an entire network of small businesses without a fight.

Woke Leadership: Out of Touch and Out of Ideas

Here’s the real problem, folks—Volkswagen’s leadership. These are people who don’t understand America, don’t understand the American dealer, and certainly don’t understand the American customer.

Their marketing teams are run by coastal elites who think a good ad is one that wins an award, not one that sells a car. Their agencies are staffed by kids who wouldn’t know a car payment if it hit them in the face.

And let’s not forget the woke culture permeating these companies. DEI meetings, election stress days, and executives more concerned with optics than outcomes. This is the culture driving Volkswagen’s decisions. This is why they’re failing.

A New Start: The Atlanta Opportunity

Here’s an idea: if VW really wants to reinvent itself, why not go all in? Move your operations out of the bureaucratic bubble of D.C. or the sleepy suburbs of Virginia and head south—to Atlanta.

Atlanta has become the epicenter of American culture, business, and innovation. Mercedes-Benz made the move, and look at them now—thriving, plugged into the pulse of the country, and embracing a new chapter. Porsche’s U.S. headquarters is there too, complete with an experience center that actually connects with buyers.

VW could use a dose of that energy. Hire smart, in-touch people who understand the market, the dealers, and the customers. Set up shop in a city that’s shaping the soul of America, not stuck in a D.C. mindset that’s more concerned with optics than results.

But VW won’t do it. Instead, they’ll keep hiring from the same old pools. You know the type: the D.C. prep school grads who voted for Biden but are still mad about 2016. They’ll talk about equity and inclusion while sipping kombucha, all while failing to move a single car off the lot.

The Death of Small Dealers

Let’s not sugarcoat this. If CUPRA’s model works, it’s the beginning of the end for small, family-owned dealerships.

These are the people who’ve kept the auto industry alive. They’ve invested millions in their businesses, their communities, and their brands. And now, they’re being pushed out by corporate greed and short-sighted decision-making.

This isn’t just a business decision—it’s a betrayal.

The Bottom Line: Wake Up, Volkswagen

Volkswagen, you’ve lost your way. You’ve forgotten what made you great. It wasn’t your executives. It wasn’t your marketing agencies. It was the dealers. The small, family-owned businesses that believed in your brand, even when you didn’t deserve it.

It’s not too late to turn this around. Move to Atlanta. Hire better people. Work with your dealers, not against them. And for the love of God, stop trying to be Tesla.

Be Volkswagen. Be the brand that brought us the Beetle, the Jetta, the Passat. Be the brand that stood for something.

Because if you don’t, you’re not just killing your dealerships. You’re killing yourself.