Scout Motors Just Got A Big Step Closer To Bypassing Dealerships

• Scout Motors can sell vehicles directly to consumers in Colorado, Automotive News reported. 
• The Terra truck and Traveler SUV launch in 2027. 
• Scout has faced pushback from VW dealers over its plans to bypass traditional dealerships.

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. 

The Scout Terra is a pickup that will be available in both pure EV and range-extended versions.

Photo by: Scout Motors

Here’s more from Automotive News:

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. He likened the DTC buying process as buying a phone from Apple instead of Best Buy. 

But startups trying to go this route need to navigate strong dealer franchise laws that require vehicles to be sold through a middleman. They also need to contend with pushback from the dealers themselves. Tesla still can’t sell direct-to-consumer in many U.S. states, including its home state of Texas. Volkswagen dealers in California and Florida have sued Scout over its plans.

And it’s easy to see why they’d be passionate about selling Scouts in particular. The boxy Terra truck and Traveler SUV, which Scout plans to sell as both pure EVs and as extended-range EVs with gas generators, are exactly the types of vehicles that Americans crave. And Volkswagen, which doesn’t sell a pickup in the U.S., has for decades struggled to grow its market share.

Dealers are likely to appeal the ruling, the report said, but the decision could still set a meaningful precedent for Scout, paving the way for the new brand to roll out its own showrooms nationwide.

Contact the author: Suvrat.Kothari@InsideEVs.com

Additional reporting by Tim Levin