Scout Motors said more than 160,000 people have made reservations for its Terra pickup and Traveler SUV, a milestone announced the same week two dealers filed a class-action lawsuit against the company and Volkswagen over its proposed direct-to-consumer model.
For context: Volkswagen relaunched the Scout Motors brand in October 2024 to produce its two fully electric trucks as an independent company selling directly to consumers.
Then, after EV sales slowed down in the U.S., Scout added the hybrid option.
And now: Reservations for said models are climbing past 160,000, with most shoppers (87%) selecting the extended-range electric vehicle option over the battery-electric vehicle model, per Automotive World.
Why this matters: The reservations being touted by Scout are also referenced in a March 3 lawsuit, filed in Virginia, as strengthening the plaintiff’s argument that Scout is already selling to consumers, and therefore bypassing the dealer network.
In the lawsuit, it’s noted that 150,000+ reservations were made at $100 each, totaling at least $15 million.
But the latest Scout numbers push the new total to at least $16 million, though the company has said those aren’t sales, just reservations, and that customers can cancel them.
“...Not only are the dealers losing their opportunity to collect $100 from every purchaser and make a profit from the vehicle’s sale, but they are also injured by lost opportunities to finance, service, and repair the vehicles, and to cross-sale these and other VW vehicles, both now and in the future,” the court filing states.
Looking ahead: Scout CEO Scott Keogh said he expects customers to receive the vehicles by 2028, speaking at an Automotive Press Association event in Detroit on March 4, according to Reuters.
But while demand for Scout vehicles is clear, some are arguing that the dealer argument is as well.
“This should be a class-action lawsuit,” Kenneth Criscione, general manager with Harte Auto Group, wrote in the replies of Car Dealership Guy News’ initial LinkedIn post regarding the lawsuit.
He added, “You can’t have your dealer body who has been with you through thick and thin, your diesel-gate, and all the other problems that you’ve brought to the table…and then go and screw them out of their best opportunity for return on their investment.”
What we’re watching: Longtime Volkswagen dealers say they want the opportunity to sell and service those models themselves, and the lawsuit suggests that tension isn't going away anytime soon.
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