“`html
Even as many automakers dial back their ambitious electrification plans in the wake of shifting consumer tastes and regulatory environments, the volkswagen Group is continuing full steam ahead with the launch of its new Scout Motors electric pickup and SUV brand. Scout Motors is an ambitious step for Volkswagen, taking a historic American name and bringing it back with retro-influenced pickups and SUVs.Now part of the brand’s ambition is already running into legal issues in the state of Colorado.
Like Tesla and Rivian, the latter of which Scout Motors trucks hope to directly compete against, Scout plans to operate with a direct-to-consumer sales strategy. This would bypass the third-party dealer franchise system that traditional automakers use, including the other brands owned by the Volkswagen Group. However, because Scout plans to sell pickups and SUVs that have gasoline engines as range extenders, a group of car dealers is suing the state of Colorado for giving Scout Motors a license to sell vehicles directly to buyers without using franchised dealerships.
Beyond just the situation in one state, the lawsuit represents a broader argument over what exactly constitutes an electric vehicle, and also how the new Scout Motors brand will coexist alongside the Volkswagen Group’s larger, more established brands.
Not a new issue
The argument over direct-to-consumer sales of EVs in the United States is not a new one. Tesla has long faced challenges to its strategy of bypassing the traditional car dealer model.Even today, with Tesla
