Scout, an emerging American automotive brand, has successfully obtained a license to sell vehicles directly to consumers in Colorado. This decision by the state’s Motor Vehicle Dealer Board marks a significant regulatory breakthrough for the company, allowing it to bypass the traditional franchise system that typically governs vehicle sales.
The approval came despite opposition from local dealers who raised concerns about Scout’s ties to the Volkswagen Group. The Board determined that Scout operates distinctly from Volkswagen, Audi, and Porsche, thus permitting its direct sales model. This move positions Scout alongside other direct-to-consumer brands like Tesla, Rivian, and Lucid, which have leveraged regulatory allowances in Colorado to reach buyers without intermediary dealers.
Details of the License
Scout’s new license is effective until October 31, 2026, enabling the company to offer new, used, and wholesale vehicles across Colorado. While the specifics of the company’s physical presence in the state remain unclear, the decision represents a crucial step in Scout’s growth strategy.
Matthew Groves, chief executive of the Colorado Auto Dealers Association, has been vocal in opposing the license, citing financial concerns tied to Volkswagen. He suggested that while the association could pursue legal action against the ruling, it might also allow Scout to enter the market and demonstrate its viability. “We can just let Scout out to market and see if they can swim,” Groves remarked.
Implications and Future Plans
Following the Board’s ruling, Cody Thacker, Scout’s vice president of commercial operations, expressed satisfaction with the outcome. “Despite repeated attempts by dealer lobbyists to unfairly prevent Colorado consumers from choosing how they want to buy cars, today’s decisive approval 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,” Thacker stated.
As of now, it is uncertain whether Scout has secured dealer licenses in other states, although California is a primary target for the company. Scout has been actively pursuing regulatory approval in California for over a year, recognizing the immense market potential in the state.
Production of Scout’s first vehicles, which include the Terra pickup and Traveler SUV, is slated to begin in 2027 at a new factory near Columbia, South Carolina. With this license in hand, Scout aims to enhance its footprint in the competitive automotive market.
