Dealer Groups to Challenge Scout Motors Direct Sales Plan

Oct. 25, 2024 | |

Volkswagen’s decision to bypass its U.S. dealer network and sell Scout Motors EVs directly to consumers drew a swift rebuke from national and state dealer associations.

In a statement to Reuters, representatives of the National Automobile Dealer Association and state dealer associations will band together to “challenge this and all attempts to sell direct in courthouse and statehouses across the country.”

Unlike Tesla, Rivian and other EV makers that have challenged state laws enshrining the franchised dealership model, Scout belongs to a massive manufacturer with an established dealer base — and one that has been asking for vehicles of the type that division produces.

Volkswagen’s decision is “disappointing and misguided, and it will challenged,” NADA CEO Mike Stanton wrote.

Read more at Reuters