- The revived brand will not budge on demands to let VW dealers sell its vehicles.
- Interested customers can reserve a Scout Terra or Traveler with a $100 deposit.
- Scout has vowed to defend itself against any legal actions from Californian dealers.
Scout Motors has drawn a firm line in the sand against the California New Car Dealers Association (CNCDA), rejecting its demands to abandon direct-to-consumer sales. The revived off-road-focused brand, operating independently of Volkswagen Group of America (VWGoA), has called out the CNCDA for making “egregious misstatements” about its sales plans. Scout insists it has no intention of using traditional dealerships, maintaining that direct sales are central to its strategy.
In late December, the CNCDA demanded that Scout stop taking orders for the Terra and Traveler, alleging that the brand was violating Californian law by selling the pickup and SUV directly to consumers. In a sharp response shared by TheDrive, Scout’s general counsel, Neil Sitron, made it clear the CNCDA’s claims were not only wrong but fundamentally misunderstood the company’s operations—specifically by incorrectly asserting that VW Group of America was responsible for selling Scout models.
Read: VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers
“VWGoA is not authorized by Scout Motors to sell, and will not be selling or distributing, Scout-branded EVs in California or in any other state. Scout Motors and the Scout brand exist and operate independently of VWGoA and its brands such as Volkswagen and Audi,” Sitron said.
Sitron clarified that Volkswagen Group of America has no role in Scout’s management or operations. He also dismissed the CNCDA’s claim that Volkswagen invested “billions of dollars” into Scout’s South Carolina production plant, emphasizing that the facility is entirely Scout’s project. He also rejected the idea that VW dealers are entitled to sell Scout vehicles, stating, “Volkswagen-brand dealers have no right to Scout-branded vehicles, nor do any other franchised dealers.” Scout, instead, remains focused on its “customer-first vision” to deliver a seamless, transparent, and modern buying experience.
Automaker’s direct-sales plan
In his letter, Sitron left no room for compromise: “Scout Motors will not do business with anyone that threatens or tries to intimidate it, either directly or indirectly.” He further warned, “should the CNCDA decide to act on its threats, Scout Motors will vigorously defend against them.”
Californian VW dealers plan to file a lawsuit, claiming that Scout’s sales strategy violates local franchise laws. Scout believes that selling vehicles directly to consumers is essential for the brand’s success, noting that EV buyers want transparent pricing and an easy digital experience. It will also allow vehicle purchase transactions to be completed in minutes and handle all reservations, sales, delivery, and servicing directly.
While the CNCDA seems determined to challenge Scout’s approach, the company has made one thing abundantly clear: it has no plans to back down. Scout’s choice to bypass traditional dealerships could signal a major shift in the automotive industry, pitting long-established systems against the changing expectations of today’s buyers.
Terra and Traveler Reservations Open
For now and despite the brewing legal conflict, Scout is moving ahead with its plans. Reservations for the Terra pickup and Traveler SUV are already open, with interested buyers able to secure their spot for a $100 reservation fee. Production for both models is set to begin in 2027 at Scout’s Production Center near Columbia, South Carolina.
