Scout Motors Hit with LawsuitÂ
They 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 in the Eleventh Judicial Circuit Court in Miami-Dade County 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 expected 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.
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