TSLA365.9202.36%
GM85.555-0.565%
F13.9100.03%
RIVN16.1700.12%
CYD35.835-0.065%
HMC32.5550.94%
TM198.3255.845%
CVNA69.370-0.91%
PAG216.155-0.455%
LAD356.940-9.21%
AN204.140-3.08%
GPI278.020-3.82%
ABG207.355-1.455%
SAH76.040-0.48%
TSLA365.9202.36%
GM85.555-0.565%
F13.9100.03%
RIVN16.1700.12%
CYD35.835-0.065%
HMC32.5550.94%
TM198.3255.845%
CVNA69.370-0.91%
PAG216.155-0.455%
LAD356.940-9.21%
AN204.140-3.08%
GPI278.020-3.82%
ABG207.355-1.455%
SAH76.040-0.48%
TSLA365.9202.36%
GM85.555-0.565%
F13.9100.03%
RIVN16.1700.12%
CYD35.835-0.065%
HMC32.5550.94%
TM198.3255.845%
CVNA69.370-0.91%
PAG216.155-0.455%
LAD356.940-9.21%
AN204.140-3.08%
GPI278.020-3.82%
ABG207.355-1.455%
SAH76.040-0.48%

Scout Motors wins Colorado license to sell direct to consumers

Scout plans to begin production in late 2027.
Scout Motors won approval to sell vehicles directly in Colorado, an early win as the VW-backed startup challenges franchise laws.

On the Dash:

  • Colorado approved Scout Motors to sell vehicles directly to consumers through a state-issued dealer license.
  • The decision allows Scout to bypass franchised dealers despite opposition from dealer groups.
  • Scout plans to launch production in South Carolina in 2027 as legal challenges continue in other states.

Scout Motors has secured approval to sell vehicles directly to consumers in Colorado, marking an early regulatory win for the Volkswagen Group-backed startup as it pushes forward with a direct-to-consumer sales strategy in the U.S.

Colorado’s Motor Vehicle Dealer Board voted 6-2 on Dec. 16 to grant Scout a dealer license, allowing the brand to sell new, used and wholesale vehicles in the state. The license is valid through Oct. 31, 2026. The decision positions Colorado as one of the first states to formally approve Scout’s sales model, despite ongoing opposition from dealer groups nationwide.

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

The approval clears the way for Scout to establish brand-owned locations and customer experience centers in the state. Denver was previously identified as one of the company’s initial target markets for company-operated rooftops. It remains unclear how many Colorado locations Scout plans to open or whether similar approvals have been granted in other states.

Scout’s business plan centers on selling an electric SUV and pickup directly to consumers through streamlined digital transactions, supported by a flexible nationwide service footprint. The company has revealed two vehicles, the Traveler SUV and Terra pickup, both aimed at the U.S. market. Scout is also developing an extended-range electric system that uses a gasoline engine as a generator, a detail that has drawn scrutiny from dealer groups questioning whether the vehicles should qualify under existing EV exemptions.

The Colorado ruling determined that Scout is not considered a same-line manufacturer as Volkswagen, Audi or Porsche, despite its financial backing from Volkswagen Group. The board also found that Scout qualifies under Colorado law to operate outside the traditional franchise dealership structure.

Dealer associations in multiple states have challenged Scout’s direct sales approach. Legal actions are ongoing in California and Florida, where dealer groups are seeking to block the company from bypassing franchised retailers. In Colorado, dealer representatives are weighing potential appeals following the board’s decision.

The ruling comes after a proposed Colorado bill that would have restricted manufacturers and their affiliates from selling directly to consumers stalled in the state legislature earlier this year. Scout plans to begin production at a new manufacturing facility in South Carolina in late 2027.

Read More
More from Daily Automotive News
Janssen Auto Group

Janssen Auto Group acquires Gregg Young Chevrolet of Plattsmouth

- September 11, 2026
Janssen Auto Group acquired Gregg Young Chevrolet of Plattsmouth in Nebraska from Gregg Young Automotive Group in September 2026, expanding its existing presence in the market. The dealership will continue...
New York wants you to drive 20% less. So do other states! Big MISTAKE!

New York wants you to drive 20% less. So do other states! Big MISTAKE!

- September 11, 2026
New York lawmakers have a message for drivers: You are apparently driving too much. Not because you are speeding, driving recklessly, or breaking the law. The problem, according to a...
California's new car taxes are coming – plus the BMW M3 & BRABUS BODO

California’s new car taxes are coming – plus the BMW M3 & BRABUS BODO

- September 8, 2026
California is coming after your car again — with new tire rules, mileage tracking and another potential $900-a-year vehicle tax. But that’s not all on this week’s The Drive with Lauren...
Courtesy Automotive Group adds two Tucson dealerships

Courtesy Automotive Group adds two Tucson dealerships

- September 4, 2026
Pinnacle Mergers & Acquisitions has facilitated the sale of Watson Chevrolet and Infiniti of Tucson in Arizona to Scott Gruwell, President and CEO of Courtesy Automotive Group. The transaction expands...
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.