Dealers Move to Block Scout’s ‘Unlawful’ Direct Sales Plan That Cuts Them Out Entirely

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That the state of South Carolina, the selfsame state in which Scout will manufacture all of their vehicles, has a legislative ban on direct sales to consumers, is one of the most hilarious ironies that could possibly exist.
It’s hilarious because the Governor of Scout Carolina is in full support of Scout. So maybe they will work a deal of some sort.
 
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I question how CA dealers can file cease and desist if you are only reserving. What if every reservation holder plans to pick up at the plant in SC for delivery experience. Or what if they all plan to go to nearest Scout center outside of California. They can’t stop you from buying your car in another state. I live in PA and once bought a car in DE. Just paid the tax differences. Easy-peasy!
I get they can argue no sale but cease and desist on a reservation is bullshit

You can file a "Cease and Desist" on anything. It's just a warning/threat, that you might actually file some kind of lawsuit, not a lawsuit itself.

Trump filed a Cease and Desist over broadcasting poll numbers he didn't like...
 
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You can file a "Cease and Desist" on anything. It's just a warning/threat, that you might actually file some kind of lawsuit, not a lawsuit itself.

Trump filed a Cease and Desist over broadcasting poll numbers he didn't like...
I know you can file. I’d just like to know what reasonable judge would accept the request being as they haven’t even established locations. Postering is postering but seems a touch early to file without having any solid insight into SM business plan. Scout hasn’t even announced their final 30 locations-that’s less than 1 per state so for CA VW dealers to jump this early tells me they are very concerned.
 
Looks like Lamborghini has just about 30 dealerships across the U.S. including Hawaii 🤣. Worst case scenario the sales people at Lamborghini must be a bit better at proper sales than typical dealership sales people 🤣
 

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As a South Carolinian, I agree the state legislature and governor will get this worked out.
As a fellow South Carolinian, I would like to think that is true. But I cannot help but note that one of the largest economic development incentive packages in the history of the state was exercised without first remedying Section 56-15-45(D) of the South Carolina Code. The dysfunction of the General Assembly can at times be staggering.

There's time for lobbying to end in a happy outcome, so I'll choose to be optimistic. I'll also plan for the possibility of needing to purchase out of state, just in case.
 
As a fellow South Carolinian, I would like to think that is true. But I cannot help but note that one of the largest economic development incentive packages in the history of the state was exercised without first remedying Section 56-15-45(D) of the South Carolina Code. The dysfunction of the General Assembly can at times be staggering.

There's time for lobbying to end in a happy outcome, so I'll choose to be optimistic. I'll also plan for the possibility of needing to purchase out of state, just in case.
And unfortunately it is difficult to oppose the well funded and active lobbyist....like car dealers
 
I know you can file. I’d just like to know what reasonable judge would accept the request being as they haven’t even established locations. Postering is postering but seems a touch early to file without having any solid insight into SM business plan. Scout hasn’t even announced their final 30 locations-that’s less than 1 per state so for CA VW dealers to jump this early tells me they are very concerned.

A judge isn't involved. It's a threat. Not actual litigation.

It's stop this, or else there will be actual litigation - then the judge gets involved.

It's a borderline bluff at this point...
 
A judge isn't involved. It's a threat. Not actual litigation.

It's stop this, or else there will be actual litigation - then the judge gets involved.

It's a borderline bluff at this point...
Yes. I understand. I didn’t realize I needed to post step by step to satisfy all readers. Hence my note about postering. I’ll work harder to spell everything out step by step for your liking as that seems to be your preference on all your post-good Lord!
Working for builders and developers I’ve been involved with issuing cease and desist orders. Sorry I’m not an expert!
 
Based on things I’ve heard I’m sure there are fights ahead but SM didn’t announce their intent without a lot of pre-planning from a legal standpoint. Again, you don’t get this far, make announcements, do nationals reveal, start a factory without some serious research and bullet proof arguments. I’m sure not every state will be achievable just like Tesla but I’m sure they are prepared.
It’s a shame VW doesn’t sell motorcycles and ATV’s like Honda because that would be the dealership I would go to if I had to. Still a honda product-maybe as Honda builds more EV’s they’ll figure this approach out 🤣
Maybe VW should buy one of the smaller ATV companies then tie SM to that if they have to do dealership sales. That would be SWEET justice

Lol... How about a sled & ATV company?​

Scout Snowcat????

Textron seeks buyer for Arctic Cat division​


 
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California is basically becoming the Ferrari of states. Issuing cease and desists to something that hasn’t happened yet. But is in the works.
 
Looks like Lamborghini has just about 30 dealerships across the U.S. including Hawaii 🤣. Worst case scenario the sales people at Lamborghini must be a bit better at proper sales than typical dealership sales people 🤣
What a coincidence! A Lamborghini is my back-up vehicle if the New Scout doesn't come to fruition! A Lamborghini with 37's! YES! *grin*
 
Looks like Lamborghini has just about 30 dealerships across the U.S. including Hawaii 🤣. Worst case scenario the sales people at Lamborghini must be a bit better at proper sales than typical dealership sales people 🤣
Sounds like the next best option lol.

Lamborghini has strict rules on pricing, like staying around MSRP value, sadly no negotiations though.

Even though it won’t happen, Scout will be D2C. Almost every car company has to deal with lawsuits and or cease and desists.
 
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While there are a couple threads talking about potential lawsuits, this is the first real shot at Scout from dealers and, more specifically, comes from California dealers.



I guess the million dollar question is, how much actual control does VW have over Scout?
I'm sure they'll have as much luck as they did against Tesla. The laws very my state so its going to have to be several lawsuits.
 
I will say that I'm little shocked by the over-the-top responses of "cancelling" my order if they have to be a dealer model. I know many of you have bad dealer experiences. But it's not that bad. I'm sure the flames are a comin' LOL. But really. Whether it's my motorcycles, or my truck, countless cars, or what I'm currently trying to obtain.....a 2024 VW Golf R with the manual transmission. It's easy. Contact the Internet Sales Department!!!!! Yes, online. Got the price, used my financing or the good rate offered by VWOA. Done. Yeah, there are some boxes you can tick for service packages, protection etc. but it is no different than buying an airline ticket or something where they ask for protection add on's. Easy peasy.

Now, if you choose just to walk into a showroom for the point of jousting with someone and haggle over price then that's on you. There are very simple options. And every time I used the Internet Sales Department; it has never been difficult at all.

I will not "cancel" my order if Scout is forced to go to a dealer model. Why because if they do, they do the Saturn dealer model, where the price is the price and force those new dealers to abide by those very specific set of Scout only rules. I think it's a way to keep the Auto Nations out of the system. Ooops....sorry(not sorry) for dropping the name of a sheister dealer network.
 
I will say that I'm little shocked by the over-the-top responses of "cancelling" my order if they have to be a dealer model. I know many of you have bad dealer experiences. But it's not that bad. I'm sure the flames are a comin' LOL. But really. Whether it's my motorcycles, or my truck, countless cars, or what I'm currently trying to obtain.....a 2024 VW Golf R with the manual transmission. It's easy. Contact the Internet Sales Department!!!!! Yes, online. Got the price, used my financing or the good rate offered by VWOA. Done. Yeah, there are some boxes you can tick for service packages, protection etc. but it is no different than buying an airline ticket or something where they ask for protection add on's. Easy peasy.

Now, if you choose just to walk into a showroom for the point of jousting with someone and haggle over price then that's on you. There are very simple options. And every time I used the Internet Sales Department; it has never been difficult at all.

I will not "cancel" my order if Scout is forced to go to a dealer model. Why because if they do, they do the Saturn dealer model, where the price is the price and force those new dealers to abide by those very specific set of Scout only rules. I think it's a way to keep the Auto Nations out of the system. Ooops....sorry(not sorry) for dropping the name of a sheister dealer network.
I wouldn't cancel because it's a dealer model, although I would be very disappointed. When I would cancel, would be if the dealer then does a 'market adjustment' and tries to get more than MSRP. If that happens, then I would cancel my order.
 
Shocking that California has nothing better to do... when will mother nature do us all a favor and drop that state in the ocean... I'd feel bad for the fish because I'm sure they'd all have to move because everyone knows that everything in California causes cancer. (Sarcasm, for all of those that don't what that is)
 
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