Scout Motors vs. CNCDA: The Battle Over Direct-to-Consumer Sales Heats Up

Scout Motors isn’t backing down in its showdown with the California New Car Dealers Association (CNCDA). Revived with a bold vision, the off-road-loving EV brand has flatly rejected CNCDA's push to abandon its direct-to-consumer sales model. Scout says this approach isn’t just a choice—it’s their core strategy, and they’re ready to defend it fiercely.

It all kicked off in late December when the CNCDA accused Scout of breaking California’s franchise laws by taking orders for its Terra pickup and Traveler SUV directly from customers. But Neil Sitron, Scout’s general counsel, fired back hard, calling the claims “flat-out wrong.” He clarified that Volkswagen Group of America (VWGoA) has no hand in Scout’s operations or its vehicles. He stated that Scout Motors has not authorized VWGoA to sell or distribute Scout-branded EVs in California or anywhere else.

The CNCDA incorrectly claimed that Volkswagen funded Scout's brand-new South Carolina production plant, demonstrating Scout's independence from VWGoA. Sitron clarified that this facility is entirely owned by Scout. He also shut down any notion of traditional VW dealerships selling Scout vehicles, emphasizing, “Volkswagen dealers have no claim to Scout-branded vehicles.”

Scout’s decision to go direct stems from their focus on making car buying straightforward. EV buyers, they argue, are looking for transparent pricing and a no-hassle online experience. From reservations to servicing, Scout plans to handle it all themselves, ensuring transactions can wrap up in minutes without dealership delays.

Despite threats of legal action from California VW dealers, Scout isn’t flinching. In a strongly worded reply, Sitron made it clear they won’t cave to “intimidation.” If the CNCDA moves forward with its threats, Scout is ready to fight back.

For the time being, the brand is making significant progress. Reservations for the Terra and Traveler are open for just $100, and production is on track to kick off in 2027 at their South Carolina facility. This face-off could spark a big shift in how cars are sold, pitting the old dealership system against Scout’s digital-first approach.