A coalition of Florida car dealers has filed a lawsuit against Scout Motors, arguing that its direct-to-consumer sales strategy contravenes state law. The dealers claim that Scout, part of the Volkswagen Group, has not obtained the necessary license to sell in Florida and that accepting deposits from customers is tantamount to selling. With Scout's first vehicles not scheduled for production until 2027, the dealers aim to prevent any unlawful sales practices before they commence, as the automotive sales landscape grows increasingly contentious between traditional dealerships and emerging manufacturers.
"Florida has a clear definition of the word 'sell' and Scout Motors is actively selling in violation of state law," said John Forehand, an attorney representing the dealers.
The suit asserts that Scout's sale plan is 'unlawful' since it has yet to secure a license from Florida's Department of Highway Safety.
Dealers claim Scout's acceptance of $100 deposits from interested customers constitutes a violation of state law against direct sales.
Almost as soon as Scout's EVs were announced, dealers were grumbling about the possible illegalities of its sales model.
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