VW Dealers And NADA Will Fight Scout Motors In Court Over Direct Sales
VW insisted Scout is an independent brand, despite being backed by the conglomerate. The National Automobile Dealers Association is ready to challenge Scout in court. Scout has decided against using VW’s huge network of dealers to sell its models. Scout Motors infuriated VW dealers across the United States last week when it confirmed that the upcoming Terra and Traveler will be available via a direct-sale model rather than through existing dealerships. However, state dealer associations and the National Automobile Dealers Association (NADA) are already fighting back and looking for ways to block the revived brand’s hotly contested plan. While Tesla was a trailblazer for direct-to-customer sales in the US, it faced many legal hurdles in skirting regulations designed to protect franchised dealerships . Scout differs from Tesla in that it’s not a true startup and is owned by the VW Group. Its affiliation with the German car manufacturer may complicate its ability to sell v...