can now sell cars directly to Colorado consumers, bypassing traditional dealerships, after the state’s approved the company’s license in a 6–2 vote on Dec. 16, despite strong opposition from dealers.
First reported by , the license is valid through Oct. 31, clearing the way for Scout to sell its electric vehicles in the state.
Cody Thacker, vice president of commercial operations at Scout Motors, emphasized the benefits for consumers and the company’s commitment to the state.
“Scout Motors would like to thank the Colorado Auto Industry Division and the Motor Vehicle Dealer Board for conducting their due diligence on our dealer license application and affirming our legal right to sell vehicles under Colorado law,” Thacker said in an email statement to The Post.
“This direct sales model allows us to lower costs for consumers, provide greater price transparency, deliver a faster and more convenient transaction process, and establish one-to-one relationships with customers.”
Founded in September 2022, Thacker said Scout Motors is an independent American company, building everything from the ground up.
While an independent company, Scout Motors is backed by Volkswagen AG, a publicly traded German company, making it a .
The Scout, originally produced by , stakes its claim as the world’s first utility vehicle.
The Volkswagen Group brand in 2021 through its purchase of Navistar, which was created in 1986 when International Harvester reorganized its truck division.
The license approval also marks a milestone for Scoutap vehicle model launch plans. Beginning in 2027, Scout plans to start production of its Traveler SUV and Terra truck.
Scout vehicles will be engineered in Detroit and built in South Carolina, drawing on the manufacturing and production expertise of the Volkswagen Group.
Both models will be offered with either a fully electric power source delivering an estimated range of up to 350 miles, or an available range extender that recharges the battery and enables more than 500 miles of total range.
Entry-level pricing for both models is expected to start under $60,000.
Kyle Boyd, communications manager for the Colorado Department of Revenue, confirmed with The Post that the license allows Scout to sell new, used and wholesale motor vehicles.
The Motor Vehicle Dealer Board consists of nine members, including three motor vehicle dealers, three used vehicle dealers and three public members. The Division Director and Executive Secretary of the Board, John Opeka, was not available for comment.
Colorado dealers quickly criticized the move, saying it was an attempt to sidestep laws that keep automakers out of retail sales. Volkswagen dealers have also in the past to block Scoutap direct-sales plans in other states.
“Ultimately, we are disappointed in the outcome of the licensing action,” said Colorado Automobile Dealers Association CEO Matthew Groves.
“But it is only the first step in this journey. Our industry will look to preserve justice and protect our franchise law through every available means.”
In March 2020, Gov. Jared Polis amending the state’s dealer statute to allow vehicle manufacturers to own, operate and control dealerships in Colorado only if they make exclusively electric vehicles and do not have any franchised dealers of the same line-make.
The board determined that Scout Motors is as Volkswagen, Audi, or Porsche, a legal distinction that allowed the approval despite Volkswagen’s financial backing, according to GM Authority.
Despite the opposition, Thacker said Scout Motors is committed to its customers and “will not be intimidated out of doing what is right for them.”
“Despite repeated attempts by dealer lobbyists to unfairly prevent Colorado consumers from choosing how they want to buy cars, this 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 plans to open retail stores in 16 metro areas, with a long-term goal of expanding to roughly 100 locations across the U.S. and Canada by 2032, according to its website.
