Scout Motors sued over plan to sell EVs direct to consumers

Scout Motors’ plan to eschew traditional dealerships and sell EVs directly to consumers is running into legal trouble.

A group of Volkswagen and Audi dealers filed a lawsuit this week against Scout Motors, the EV that spun out of Volkswagen. The lawsuit, which was first reported by Automotive News, seeks to block Scout’s direct-to-consumer sales retail model.

Dealerships have fought for years to block EV startups — notably Tesla — from the direct-to-sales model with mixed success. Now, the fight is focused on Scout, which isn’t expect to begin producing EVs until 2027.

The California New Car Dealers Association issued in December 2024 a cease-and-desist letter to Volkswagen and Scout Motors, claiming direct sales violates state law. Dealership groups in other states, notably now in Florida, are also trying to prevent Scout from direct sales.