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Scout Motors can build in S.C.—but no direct sales allowed for now
Scout argues that working with franchised dealers could add up to 50% in costs and hurt the customer experience. (2 min. read)
Anna del Villar
February 14, 2025
A South Carolina House subcommittee meeting has stalled a bill that would have allowed electric vehicle manufacturers to sell directly to consumers—dealing a blow to companies like Tesla, Rivian, and Scout Motors.
For context: The South Carolina Consumer Freedom Act aims to let EV makers without prior franchise agreements sell directly and operate their own service centers.
Supporters argue the measure would boost competition and allow consumers to buy EVs without relying on traditional dealerships.
But local dealers fought back, saying the bill would undermine a business model that has served the state for decades.
What’s happening: Scout Motors—a new EV brand under Volkswagen, is in the middle of the fight. The company is investing $2 billion in a massive plant in Richland County, expected to create 4,000 jobs. But with the bill facing fierce opposition—Scout may not be able to sell its vehicles directly in South Carolina once production begins.
High stakes: Scout argues that working with franchised dealers could add up to 50% in costs and hurt the customer experience.
“We're simply asking South Carolina to remove an antiquated regulation that prevents consumers from making their own economic decisions," said Scout representative Andrew Thacker. "Instead of being stuck in the past, we can look forward and ready ourselves for the future."
Between the lines: Scout also doesn’t trust traditional dealerships to push its vehicles as aggressively as gas-powered SUVs, particularly if federal EV tax credits disappear.
Yes, but—for dealer groups—the concern runs deeper than just one brand.
They see a broader risk of automakers bypassing long-established retail partners while still benefiting from the brand strength and customer loyalty those dealers spent years building.
Volkswagen dealer Marc White, owner of Steve White Auto Group in Greenville told WLTX-TV, saying, “Now, Volkswagen wants to sell its new brand, Scout Motors, without dealers. That doesn't sit well with me or my 150 employees who count on the franchise dealer model.”
Lawmakers echoed those concerns, questioning whether direct sales would ultimately put 18,000 dealership jobs at risk. Rep.
What we’re watching: Scout has committed to building its vehicles in South Carolina regardless of the direct sales outcome but plans to continue advocating for a legal change. However—it’s not clear when the bill will come up for debate again.
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