Federal Lawsuit Puts Washington in Thick of Scout Motors Fight

The Washington State Auto Dealers Association has filed a federal lawsuit alleging Scout Motors’ plan to sell EVs directly to Washingtonians would violate state laws protecting the franchised dealer model.
Washington lawmakers have carved out exemptions to allow EV makers Tesla, Lucid and Rivian to sell directly to consumers. But Scout is a subsidiary of Volkswagen AG, which already has a network of 18 VW, seven Audi and four Porsche dealerships statewide.
WSADA’s attorneys say Scout’s plans would disadvantage dealers by competing with them for customers and depriving them of their factory’s full lineup of vehicles.
“Scout blatantly disregards clear statutory restrictions on manufacturer competition and direct-to-consumer sales, like those at issue in this litigation,” states the complaint, which was filed June 29 in the U.S. District Court for Washington’s Western District.
Scout has also been sued by dealer associations in California, Florida and Virginia. In December, Scout was granted a Colorado dealer license in a 6-2 vote by that state’s motor vehicle board.



