Scout Motors, a subsidiary of the Volkswagen Group, is set to revolutionize the way electric vehicles (EVs) and extended-range electric vehicles (EREVs) are sold in the United States. Unlike traditional automakers who rely on franchised dealerships, Scout Motors plans to sell its vehicles directly to customers, following in the footsteps of companies like Tesla and Rivian.
This direct-sales model has sparked legal challenges from Volkswagen’s existing dealers, who are concerned about the impact it may have on their businesses. However, Scout CEO Scott Keogh remains undeterred, stating that the direct-sale approach is the best way to market and sell EVs in the modern era.
The Scout Terra, unveiled at the IAA Munich auto show, stands out as a bold addition to the Volkswagen Group’s lineup of electric vehicles. The brand is gearing up to launch its vehicles in the US by 2027, with a focus on large SUVs and trucks to cater to American consumer preferences.
Keogh emphasized the importance of creating a unique brand experience for customers, likening the buying process to purchasing a product from Apple rather than a traditional retailer. He also highlighted the brand’s upcoming models, including the Terra truck and Traveler SUV, available in both fully electric and range-extender versions.
Despite facing legal challenges from dealer groups, Scout Motors is forging ahead with its direct-sales strategy. Keogh believes that owning the customer relationship and having direct access to trade-ins will be beneficial for the brand in the long run.
The CEO expressed confidence in Scout’s ability to navigate the legal landscape and succeed in the competitive EV market. By focusing on innovation, customer experience, and direct sales, Scout Motors aims to carve out a niche for itself in the rapidly evolving automotive industry.
As the brand prepares to launch its vehicles in the US market, all eyes will be on Scout Motors to see how its direct-sales model disrupts the traditional dealership model and shapes the future of electric vehicle sales.