"Scout Motors, the new Volkswagen Group brand gearing up to sell electric and range-extended SUVs and trucks in the U.S., is facing yet another lawsuit from dealers who take issue with its plans to sell direct-to-consumer. This time, the fight is in Colorado, where a group comprised of more than one-third of the Volkswagen, Audi and Porsche dealers in the state have unsheathed their litigious pens to take on the manufacturer before even a single production vehicle rolls off the line."
"The lawsuit, submitted Jan. 20 in Denver District Court alleges that the state's Department of Revenue Division of Motor Vehicles incorrectly interpreted Colorado law when it found that Scout is a manufacturer of only electric vehicles and downplayed Volkswagen Group's financial backing of the brand. The dealers argue that Scout and its parent company, the VW Group, are one and the same. That would mean that VW is essentially competing with its own franchised dealers, and that's not legal under dealer laws."
More than one-third of Volkswagen, Audi and Porsche dealers in Colorado sued the state after it granted Scout Motors a direct-to-consumer manufacturer license in December. The lawsuit, filed Jan. 20 in Denver District Court, alleges the Department of Revenue's Division of Motor Vehicles misinterpreted Colorado law by treating Scout as an EV-only manufacturer and downplaying Volkswagen Group's financial backing. Dealers contend Scout and Volkswagen Group are effectively the same, which would make Volkswagen a competitor to its franchised dealers and violate dealer laws. Dealers also assert Scout's use of extended-range, gas-generator systems classifies its vehicles as plug-in hybrids, disqualifying Scout from EV-only exemptions.
#direct-to-consumer-sales #dealer-law-dispute #extended-range-evs-erev #scout-motors--volkswagen-group
Read at insideevs.com
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