TSLA404.220-3.24%
GM82.4801.94%
F11.9300.22%
RIVN11.670-0.15%
CYD24.0000.59%
HMC33.680-0.392%
TM194.850-1.71%
CVNA59.050-0.18%
PAG211.950-0.2%
LAD288.690-2.04%
AN164.180-0.63%
GPI249.540-4.66%
ABG193.530-1.46%
SAH63.130-0.55%
TSLA404.220-3.24%
GM82.4801.94%
F11.9300.22%
RIVN11.670-0.15%
CYD24.0000.59%
HMC33.680-0.392%
TM194.850-1.71%
CVNA59.050-0.18%
PAG211.950-0.2%
LAD288.690-2.04%
AN164.180-0.63%
GPI249.540-4.66%
ABG193.530-1.46%
SAH63.130-0.55%
TSLA404.220-3.24%
GM82.4801.94%
F11.9300.22%
RIVN11.670-0.15%
CYD24.0000.59%
HMC33.680-0.392%
TM194.850-1.71%
CVNA59.050-0.18%
PAG211.950-0.2%
LAD288.690-2.04%
AN164.180-0.63%
GPI249.540-4.66%
ABG193.530-1.46%
SAH63.130-0.55%

South Carolina blocks Scout Motors’ direct sales despite $1.3B incentive

The battle over direct sales could become a defining issue for the state’s automotive future.
South Carolina blocks Scout Motors’ direct sales despite $1.3B incentive

S.C. Gov, Henry McMaster | Scout CEO, Scott Keogh

Despite South Carolina granting Scout Motors $1.3 billion in incentives to build its $2 billion EV plant in Blythewood, state residents won’t be able to buy the company’s vehicles when they hit the market in 2027. Due to state laws prohibiting direct sales, even the 4,000 workers employed at the facility will have to go out of state to purchase a Scout EV.

Scout, owned by Volkswagen, has opted for a direct-to-consumer sales model, similar to Tesla and Lucid, aiming to provide a more transparent and cost-effective buying process. However, South Carolina is among nearly 20 states that mandate vehicles be sold exclusively through dealerships. Other states with similar restrictions include Texas, Alabama, Arkansas, Connecticut, and Kansas, while North Carolina allows direct sales.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

For South Carolinians eager to purchase a Scout Terra pickup or Traveller SUV, their only option—unless laws change—is to buy one from a neighboring state where direct sales are permitted.

Push for Legislative Change Faces Dealer Opposition

However, a bipartisan bill has been introduced to modify South Carolina’s law, which would allow Scout and other automakers to sell directly to consumers. Yet, the proposal faces strong resistance from dealerships and dealer groups, which have invested millions in their businesses and view direct sales as a competitive threat.

Consumers, on the other hand, may support the change, especially following a recent appeals court ruling that overturned FTC regulations aimed at preventing dealers from charging junk fees and requiring transparent pricing. 

With Scout Motors poised to reshape South Carolina’s auto industry, the battle over direct sales could become a defining issue for the state’s automotive future.

Read More
More from Articles
Fed holds interest rates steady as auto loan costs stay high

Fed holds interest rates steady as auto loan costs stay high

- October 28, 2026
On the Dash: Fed votes to hold key interest rate at 3.75% to 4.00%, with two officials dissenting in favor of a hike. Auto loan costs keep climbing; J.D. Power...
Ford aims to simplify bidirectional charging with the Fathom

Ford aims to simplify bidirectional charging with the Fathom

- October 28, 2026
On the Dash: Fathom's bidirectional charging skips the wall-mounted inverter and projects more than 10 kW. The automaker expects the Home Power Station to cost about half as much as...
$5 billion electric school bus failure exposed - green new scam

$5 billion electric school bus failure exposed – green new scam

- October 28, 2026
Five billion taxpayer dollars. Thousands of electric school buses ordered. Hundreds delayed, some never delivered, and a major manufacturer in bankruptcy proceedings. This is what happens when Washington puts a...
Group 1 fuels Atlanta expansion with Hennessy acquisition

Group 1 fuels Atlanta expansion with Hennessy acquisition

- October 28, 2026
Group 1 Automotive has signed a definitive agreement to acquire Hennessy Automobile Companies, adding 10 luxury and import dealerships in metro Atlanta. Kerrigan Advisors represented Hennessy Automobile Companies in the...

Add us as a preferred source on Google

CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.