Colorado dealers are fighting a direct-sales lawsuit while EV sales fall and the Sunday sales ban faces a challenge. On today’s edition of CBT Live, Matthew Groves, President and CEO of the Colorado Automobile Dealers Association (CADA), explains where the Scout Motors case stands, covers how hybrids are changing the state’s market and what dealers face in the next legislative session.
According to Groves, 10 Volkswagen, Audi and Porsche dealers sued in January to prevent Volkswagen and Scout Motors from selling directly to consumers. The lawsuit names the Colorado Department of Revenue over the dealer license it issued to Scout. Since then, both the state attorney general and Scout have filed motions to dismiss. Although briefing is complete, the court has yet to rule. Meanwhile, CADA wants the license revoked, and Scout must apply for renewal this month. Because Scout has leased office space in the state, Groves expects sales to begin once the vehicle is ready.
Additionally, EV sales in Colorado are down about 50% year to date across battery electric and plug-in hybrids, which puts EVs at roughly 12.7% of the market, compared with nearly 30% at their peak. Hybrids have filled the gap and now account for 20% of the sales, or one in every five vehicles. Groves said it wouldn’t surprise him if manufacturers build a hybrid version of nearly every model. That outlook comes as uncertainty hangs over California’s emissions standard, which Congress rescinded under the Congressional Review Act.
Colorado lawmakers return in January, and the state’s 72-year ban on Sunday vehicle sales is again up for debate alongside the sunset review of the Auto Industry Division and the motor vehicle dealer board. CADA wants the ban kept because Sunday openings would raise overhead that gets passed on to consumers. Groves also said banks are closed, so buyers wouldn’t be able to complete loans.
