"Scout Motors just got meaningfully closer to getting its rugged electric vehicles on the road. The new Volkswagen Group-backed EV company got authorization to sell vehicles directly to customers in Colorado, Automotive News reported on Tuesday. In a strategic move that's roiled VW's dealers, the firm aims to bypass the traditional dealership model, much as EV makers Tesla, Lucid and Rivian have done for years."
"Colorado's Motor Vehicle Dealer Board voted 6-2 on Dec. 16 to approve Scout's application to become a dealer in the state, according to a spokesperson for the Colorado Department of Revenue's Specialized Business Group, which includes the board. Scout's detailed roadmap to sell an electric SUV and pickup to American consumers includes experience centers, speedy purchase transactions, stores in key U.S. markets and a flexible nationwide service footprint at launch."
"Skipping the dealership gives automakers far more control over how cars are sold and priced. It allows them to create standardized showrooms and buying experiences. For consumers, it also helps eliminate surprise markups, something U.S. dealers are notorious for when demand spikes for popular models. Scout aims to start rolling out vehicles in late 2027. And its CEO, Scott Keogh, who formerly ran VW of America, has been adamant that cutting out dealers is the right move."
Scout Motors obtained authorization from Colorado's Motor Vehicle Dealer Board to sell vehicles directly to consumers, with the board voting 6-2 to approve the application. The Volkswagen Group-backed company plans a direct-to-consumer rollout that includes experience centers, fast purchase transactions, retail stores in key U.S. markets, and a flexible nationwide service network at launch. Scout aims to begin vehicle deliveries in late 2027, offering the Terra pickup in pure EV and range-extended versions and the Traveler SUV. The direct-sales strategy bypasses traditional franchised dealers, prompting pushback from Volkswagen dealers and requiring navigation of state franchise laws.
Read at insideevs.com
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