- Scout will be unable to sell its EVs in the same state it builds them.
- The VW-backed company’s direct sales plan is illegal in South Carolina.
- SC lawmakers gave Scout $1.3 bn to build a factory in Blythewood.
Along certain sections of the US southern border, Mexican towns are so close that its occupants can see, hear, and smell the America many of them would love to enjoy, but can’t access. They’re so close, but so far away, which is exactly how SUV and truck buyers in South Carolina are going to feel when Scout Motors starts selling EVs in 2027.
Despite the state of South Carolina giving VW-owned Scout Motors $1.3 billion to build its $2 bn plant in Blythewood, 18 miles (29 km) north of Columbia, the state’s residents won’t be legally able to buy any of the vehicles built on its doorstep. Even the estimated 4,000 people filling the jobs Scout says it will create at the plant won’t be able to buy one.
Related: VW Dealers Are Furious, Scout Couldn’t Care Less
It’s all down to Scout’s decision to bypass the traditional dealership sales model and adopt a more modern direct-sales strategy also employed by Tesla and Lucid. The company claims this method makes the buying process more transparent for the buyer and might even save them a few thousand bucks.
Unfortunately for South Carolinians, their state is one of almost 20 that currently forbids direct selling. Anyone wanting to buy a new car has to purchase through a dealership. Other states with similar rules include Texas, Alabama, Arkansas, Connecticut, and Kansas, but not North Carolina.
South Carolina residents could still get into a Scout EV by crossing into a neighboring state that allows direct sales, but the automaker is hopeful it can persuade lawmakers to modify the law before production of the Terra pickup and Traveller SUV begins in two years’ time.
A new bipartisan bill proposing the law be modified to allow not just Scout, but all automakers the chance to sell directly, has been introduced, WIS10 reports. But as you’d expect it’s being met with strong opposition from existing dealers and dealer groups who have invested millions of dollars in their businesses and see direct-selling as a threat to their existence.
Many consumers, on the other hand, would probably welcome the chance to buy directly, particularly now that an appeals court has overturned legislation introduced last year by the FTC that prevented dealers charging junk fees and forced them to be more transparent with their prices.
Do you think buyers should always have the option of purchasing directly from the automaker. Let us know your thoughts by dropping a comment below.
