U.S. auto dealers’ groups announced on Friday that they intend to oppose Volkswagen’s decision to sell Scout Motors’ electric vehicles directly to consumers, bypassing traditional independent dealerships. The National Automobile Dealers Association (NADA) stated that it will “challenge this and all attempts to sell direct in courthouses and statehouses across the country.”
On Thursday, Scout Motors, an electric vehicle brand under Volkswagen, said it would adopt a direct sales model akin to Tesla, promising transparent pricing and a streamlined purchasing process. NADA CEO Mike Stanton criticized the move, saying, “The decision by VW to attempt to sell Scout vehicles direct to consumers and compete with its U.S. dealer partners is disappointing and misguided, and it will be challenged.”
Scout Motors CEO Scott Keogh, in an interview earlier this week, defended the direct sales approach, stating, “I think it’s critical moving into the future in unstable environments to control your customer, control your margin, control your operational excellence.” Keogh added that Scout expects to operate about 36 U.S. retail centers by the time sales begin in 2027, with a goal of expanding to around 100 locations.
State regulations prevent automakers with independent dealership networks from selling directly to consumers, and Tesla has previously sued Louisiana over its direct sales ban.
Scout’s upcoming South Carolina facility, a $2 billion project, is expected to produce up to 200,000 electric trucks and SUVs annually starting in 2027, including models with extended-range options that feature a small gasoline engine.
