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Scout Motors Gets Hit By Another Volkswagen Dealer Lawsuit [Yahoo! Finance]

Rivian Automotive, Inc. (RIVN) 
Company Research Source: Yahoo! Finance
Scout Motors, a new electric brand under the Volkswagen Group, has roiled the automaker's dealers with its plans to sell direct-to-consumer, like Tesla, Rivian, and Lucid do. On Tuesday, two VW dealers in Connecticut and New York launched a class-action lawsuit against Scout and Volkswagen, alleging that Scout's plans violate the automaker's dealership agreement. The dealers claim that Scout is an extension of Volkswagen, and so it should be required to sell through dealerships. Scout Terra Interior “In truth, Scout is simply an offshoot of Volkswagen, and Volkswagen's decision to sell the Scout EVs is a blatant breach of its contract with the dealers,” the lawsuit states. “VW dealerships are accordingly being deprived of their right and ability to sell these cutting-edge vehicles, at significant financial cost to the dealers.” It's the latest in a series of legal challenges aimed at derailing Scout's DTC ambitions. Earlier this year, dealers sued Colorado over the dealer lic Show less Read more
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