December 6, 2024
By: Thomas S. Vangel, James F. Radke, and Lindsey M. McComber
In the November issue of Massachusetts Auto Dealer, Boston attorneys Tom Vangel, Jamie Radke and Lindsey McComber co-authored an article about Scout Motors' announcement that it will implement a direct-to-consumer model for the sale of its new Terra pickup and Traveler SUV, two EVs set to launch in 2027.
The article summarizes the negative reaction of many Volkswagen dealers across the country, who argue that Scout Motors' direct-to-consumer model is in violation of state franchise laws because of Scout's relationship with Volkswagen. This connection between Scout Motors and Volkswagen could give rise to a legal challenge from Volkswagen dealers in Massachusetts under Section 4(c)(10) of Chapter 93B of the Massachusetts General Laws.
The leadership of Scout Motors asserts that it is a wholly separate brand and entity from Volkwagen, but this attempt to bypass the existing Volkswagen dealership network may still constitute an "unfair method of competition" under Chapter 93B.
Read the full article for more information.
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