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Scout Motors ’ design to shun traditional dealerships and sell EVs right away to consumers is running into legal worry .
A group of Volkswagen and Audi bargainer filed a lawsuit in the Eleventh Judicial Circuit Court in Miami - Dade County this calendar week againstScout Motors , the EV that spun out of Volkswagen . The lawsuit , which was firstreported by Automotive News , seeks to block Scout ’s direct - to - consumer gross revenue retail model .
Dealerships have fought for years to block up EV startups — notably Tesla — from the verbatim - to - sale manakin with motley success . Now the fight is focus on Scout , which is n’t expected to begin producing EVs until 2027 .
The California New Car Dealers Association go forth in December 2024 a cease - and - abstain letter to Volkswagen and Scout Motors , claim direct sales violates state law . Dealership groups in other states , notably now in Florida , are also trying to foreclose Scout from direct cut-rate sale .
