Scout Motors Faces Legal Challenge Over Direct-to-Consumer EV Sales Plan

Scout Motors Faces Legal Challenge Over Direct-to-Consumer EV Sales Plan

Scout Motors, the electric vehicle (EV) startup spun off from Volkswagen, is facing a significant legal hurdle in its ambitious plan to bypass traditional dealerships and sell its EVs directly to consumers. A group of Volkswagen and Audi dealers has filed a lawsuit in the Eleventh Judicial Circuit Court in Miami-Dade County, Florida, challenging Scout's intended retail model. This legal action, initially reported by Automotive News, seeks to prevent Scout from implementing its direct-to-consumer sales strategy. This lawsuit reignites the long-standing battle between established auto dealerships and EV manufacturers over the direct-to-consumer sales model. For years, dealerships have fiercely resisted attempts by EV startups, most notably Tesla, to circumvent the traditional dealership network. While some states have laws protecting the franchise dealer model, others have allowed manufacturers to sell directly, leading to a patchwork of regulations across the United States. Now, …