Scout Motors plans to adopt direct sales model

Scout Motors plans to adopt a direct sales model to bypass the US franchise dealer system. Scout will rely on Volkswagen Group's production base in Mexico to manufacture the engines of the above-mentioned extended-range hybrid models. However, this decision has triggered opposition from the National Automobile Dealers Association (NADA) and the California New Car Dealers Association (CNCDA), who believe that this will harm the interests of dealers.