"In truth, Scout is simply an offshoot of Volkswagen, and Volkswagen's decision to sell the Scout EVs is a blatant breach of its contract with the dealers, the lawsuit states. VW dealerships are accordingly being deprived of their right and ability to sell these cutting-edge vehicles, at significant financial cost to the dealers."
"Since its inception, Scout Motors and Volkswagen Group of America have both clearly and publicly stated that Scout Motors exists and operates independently of Volkswagen Group of America and its dealers, just as Scout Motors exists independently of all other manufacturers and their respective dealers, the spokesperson said."
"It makes sense that it would take the direct-sales approach. People generally like the upfront pricing and consistent experience of going to a Tesla or Rivian showroom."
Scout Motors, a new electric vehicle brand under Volkswagen Group, has triggered significant legal opposition from dealers over its planned direct-to-consumer sales strategy, similar to Tesla, Rivian, and Lucid. Connecticut and New York dealers filed a class-action lawsuit alleging Scout's DTC model violates dealership agreements and that Scout operates as a Volkswagen extension. Multiple legal challenges have emerged across states including Colorado, California, and Florida, with dealers arguing Scout's extended-range EVs don't qualify for EV-only brand carve-outs. Scout maintains it operates independently from Volkswagen and its dealers, emphasizing that direct sales provide consumers with transparent pricing and consistent experiences.
Read at insideevs.com
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