Scout Motors’ plan to eschew conventional dealerships and promote EVs on to customers is operating into authorized bother.
A gaggle of Volkswagen and Audi sellers filed a lawsuit this week towards Scout Motors, the EV that spun out of Volkswagen. The lawsuit, which was first reported by Automotive News, seeks to dam Scout’s direct-to-consumer gross sales retail mannequin.
Dealerships have fought for years to dam EV startups — notably Tesla — from the direct-to-sales mannequin with blended success. Now, the battle is targeted on Scout, which isn’t count on to start producing EVs till 2027.
The California New Automotive Sellers Affiliation issued in December 2024 a cease-and-desist letter to Volkswagen and Scout Motors, claiming direct gross sales violates state regulation. Dealership teams in different states, notably now in Florida, are additionally making an attempt to stop Scout from direct gross sales.