- Scout will sell vehicles directly to buyers in Colorado.
- Dealers opposed the license due to VW Group’s backing.
- Board ruled Scout is distinct from VW, Audi, Porsche.
Scout has scored a major win in Colorado, clearing a regulatory hurdle that marks a new chapter in the American brand’s rollout. The state’s Motor Vehicle Dealer Board has approved its application to operate as a dealer, granting a license that allows Scout to bypass the traditional franchise system and sell vehicles directly to consumers.
Read: Scout Finalizes SUV And Pickup Design With Only A Few Subtle Changes
It’s a significant step for the fledgling automaker, whose direct-to-consumer sales model has been met with resistance in several corners of the industry.
The Scope of the License
The license, valid through October 31, 2026, enables the VW-backed brand to offer new, used, and wholesale vehicles throughout Colorado. What remains unclear is how many physical locations Scout plans to establish in the state.
The decision puts Scout in the company of brands like Tesla, Rivian, and Lucid, which have taken advantage of a regulatory loophole in Colorado allowing manufacturers without franchise agreements to sell directly to customers. It’s a carve-out that has drawn scrutiny, particularly from groups representing traditional dealers.
Dealers Push Back
Among the more vocal opponents has been Colorado Auto Dealers Association chief executive Matthew Groves, who argued against granting Scout the license due to its financial ties to Volkswagen Group.
While Groves noted that the association could challenge the ruling through litigation, he also left the door open to another approach: “or we can just let Scout out to market and see if they can swim.”
In approving Scout’s application, the Colorado Motor Vehicle Dealer Board ruled that Scout is not a same-line manufacturer as VW, Audi, or Porsche. Scout vice president of commercial operations, Cody Thacker, is understandably pleased with the decision.
“Despite repeated attempts by dealer lobbyists to unfairly prevent Colorado consumers from choosing how they want to buy cars, today’s decisive approval by the Dealer Board ensures that we can continue moving forward with our business plans to invest in Colorado, employ Colorado workers and deliver a modern, customer-focused experience for thousands of future Scout owners in the state,” he said.
Scout’s Plans
According to Auto News, it’s not yet known whether Scout has secured a dealer license in any other state. California, in particular, remains a priority. The company has been pushing to obtain approval there for the past year, and its market potential in the state is likely unmatched..
Production of Scout’s first vehicles, the Terra pickup and Traveler SUV, is scheduled to begin in 2027 at a new factory near Columbia, South Carolina
