VW dealers are angry, but Scouts don’t care

The brand said Volkswagen of America is not involved in Scout, so VW dealers are not authorized to sell its vehicles

Scout Motors has distanced itself from the California New Car Dealers Association (CNCDA), rejecting its demands to abandon direct-to-consumer sales. The revived off-road brand, which operates independently from Volkswagen Group of America (VWGoA), accused CNCDA of making “serious misstatements” about its sales plans. Scout insists it has no intention of using traditional dealers, insisting that direct sales are central to its strategy.

In late December, CNCDA asked Scout to stop accepting orders for the Terra and Traveler, claiming the brand violated California law by selling pickup trucks and SUVs directly to consumers. strong response driveNeil Sitron, Scout’s general counsel, made it clear that CNCDA’s claims were not only false but also fundamentally misunderstood the company’s operations, specifically falsely claiming that Volkswagen Group of America was responsible for selling the Scout model.

READ: VW dealers furious over Scout selling Terra and Traveller directly to consumers

“Scout Motors has not authorized VWGoA to sell, and will not sell or distribute Scout-branded electric vehicles in California or any other state. Scout Motors and the Scout brand exist and operate independently of VWGoA and its Volkswagen and Audi brands,” Sitron said. .

Sitron clarified that Volkswagen Group America has no role in the management or operations of Scout. He also refuted CNCDA’s assertion that Volkswagen invested “billions of dollars” in Scout’s South Carolina production plant, emphasizing that the plant is entirely a Scout project. He also rejected the notion that VW dealers have the authority to sell Scout vehicles, saying, “VW brand dealers do not have the authority to sell Scout brand vehicles, nor do any other franchised dealers.” Instead, Scout remains focused on its “customers Supreme Vision” to provide a seamless, transparent and modern buying experience.

Automakers’ direct sales programs

Sitron’s letter left no room for compromise: “Scout Motors will not do business with anyone who directly or indirectly threatens or attempts to intimidate it.” He further warned, “If CNCDA decides to act on its threats, Scout Motors Will defend aggressively.”

Volkswagen dealers in California plan to file a lawsuit claiming Scout’s sales tactics violate local franchise laws. Scout believes selling cars directly to consumers is critical to the brand’s success, noting that EV buyers want transparent pricing and an easy digital experience. It also allows vehicle purchase transactions to be completed within minutes and handles all bookings, sales, deliveries and services directly.

While CNCDA seems determined to challenge Scout’s practices, the company has made one thing very clear: it has no plans to back down. Scout’s choice to bypass traditional dealers could mark a major shift in the auto industry, pitting long-established systems against the changing expectations of today’s buyers.

Terra and Traveler reservation centers open

For now, Scout is moving forward with its plans despite the ongoing legal conflict. Reservations for the Terra pickup truck and Traveller SUV are already open, and interested buyers only need to pay a $100 reservation fee to secure a spot. Production of both models will begin in 2027 at Scout’s production center near Columbia, South Carolina.