DaveM
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Here's Scout's strongly worded response letter to VW dealers' demand that they stop direct-to-consumer sales! 
https://www.thedrive.com/news/scout...ting-direct-sales-that-its-not-playing-around
Scout Warns VW Dealers Fighting Direct Sales That It’s Not Playing Around
The EV brand says it won't tolerate threats or intimidation as VW dealers try to block its plan to sell trucks directly to consumers.
Here's the original letter sent by the CNCDA:
https://www.thedrive.com/news/scout...ting-direct-sales-that-its-not-playing-around
Scout Warns VW Dealers Fighting Direct Sales That It’s Not Playing Around
The EV brand says it won't tolerate threats or intimidation as VW dealers try to block its plan to sell trucks directly to consumers.
Dear Mr. Cypers,
I respond to your December 20, 2024 letter on behalf of the California New Car Dealers Association
("CNCDA") that was posted online via a link attached to a third-party article.' Because Scout Motors Inc. ("Scout Motors") is not violating California law, there is no need to address each allegation you make. However, I want to correct certain egregious misstatements.
First, you incorrectly claim that Volkswagen Group of America, Inc. ("VWGoA") plans to "sell Scout vehicles directly to consumers in California." Not true. VWGoA is not authorized by Scout Motors to sell, and will not be selling or distributing, Scout-branded EVs in California or in any other state. Scout Motors and the Scout brand exist and operate independently of VWGoA and its brands such as Volkswagen and Audi. They will continue to do so in the future.
Second, you falsely claim that VWGoA has invested "billions of dollars into a Scout production plant in South Carolina." Again, not true. VWGoA does not control Scout Motors, is not involved in Scout Motors' management or operations, and has not made any investment in Scout Motors plant in South Carolina.
Third, you are wrong in claiming that Volkswagen-brand dealers are entitled to sell Scout-branded vehicles as a matter of right. Volkswagen-brand dealers have no right to Scout-branded vehicles, nor do any other franchised dealers. Relying on franchised dealers may be necessary for some brands, but as you and your client know, Scout Motors has decided on a different path forward for the Scout brand and intends to stay focused on its strategic customer-first vision in order to best serve its customers.
Finally, and for obvious reasons, Scout Motors will not do business with anyone that threatens or tries to
intimidate it, either directly or indirectly.
We trust that the CNCDA will reconsider its unwarranted threats and baseless positions regarding potential claims against Scout Motors. Should the CNCDA decide to act on its threats, Scout Motors will vigorously defend against them.
Neil Sitron
General Counsel
Scout Motors Inc.
Here's the original letter sent by the CNCDA:
The Calfornia New Car Dealers Association has demanded that Scout Motors / VW Group stop taking deposits for the Scout Traveler and Terra by claiming that it violates amended state law that prohibits direct vehicle sales to consumers.
On Dec. 20 the association sent a letter to the head lawyers at Scout Motors and VW Group that said the two companies' plan to sell Scout vehicles direct to consumers "wrongfully cuts new and existing VW dealers out of an opportunity" and directly violates a section of California's law covering new-vehicle sales.
Updated with the cease and desist letter from the Calfornia New Car Dealers Association (CNCDA) -- cease-and-desist letter:
“Under Vehicle Code section 11713.3(o), automobile manufacturers and their affiliates are forbidden from competing with their own vehicle franchisees. Scout is an affiliate of VW under California law. Vehicle Code section 11713.3(z) defines ‘affiliate’ as ‘a person who directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, another person.’ [emphasis added by CNCDA]. Since as early as 2022, VW has been directly and substantively involved in Scout’s development and revitalization of its vehicles, including VW’s investment of billions of dollars into a Scout production plant in South Carolina.”
