Volkswagen dealers have filed a class action lawsuit against the group over direct sales of Scout electric vehicles.

The lawsuit was filed this week in Virginia federal court on behalf of two dealerships, New York-based Sunrise Imports LLC and Curran Volkswagen Inc. from Connecticut.

Dealers claim that Volkswagen is violating its own dealer agreements. In their opinion, the revived Scout Motors brand is not an independent company, but an artificially created “branch” or “subsidiary” of Volkswagen. Its sole purpose is to sell cars (Terra pickup truck and Traveler SUV) directly to buyers online, completely eliminating dealers from the sales chain, Carscoops reports.

Losses for the dealer network can be colossal. Scout has already taken more than 150,000 pre-orders for the models, which are slated to go into production in 2027 (as 2028 model year vehicles). Customers simply submit an application and make a deposit, bypassing car dealerships entirely.

With this scheme, dealers lose not only the sales commission, but also all related income: from processing loans, after-sales service, repairs and future transactions with these customers. “They are being deprived of the legal right to sell these vehicles,” the lawsuit emphasizes.

Previously, the company defended its strategy, declaring Scout’s complete independence from the VW dealer network. Scout’s management argues that the direct sales approach is an opportunity to bring the brand to market faster and simplify the purchasing process for customers, making it more modern.

It was previously reported that UAZ would rename the SUV for the first time in the history of the Hunter model.