Scout Motors demands law change for direct vehicle sales in South Carolina

In South Carolina, Volkswagen-backed Scout Motors is investing significantly in an electric vehicle factory in Blythewood. The plant is expected to open in 2027 and aims to produce around 200,000 vehicles annually, creating approximately 4,000 jobs. However, South Carolina's laws currently prevent manufacturers from selling directly to consumers, as they require sales to go through dealerships, which raises concerns about maintaining competition and local business support. The company plans to provide a unique experience for its customers, enabling them to purchase vehicles via an app and manage everything from repairs to software updates. They argue that bypassing dealerships would simplify the buying process and help keep vehicle prices competitive for the targeted market of under $60,000. Despite facing legislative challenges, Scout Motors remains committed to its plans in South Carolina due to the state's favorable workforce and economic conditions. They assert that allowing direct sales would better align with free market principles, suggesting that the current model complicates their business model. Scout Motors' leadership aims to rally support among legislators and the public, believing that consumer freedom to purchase vehicles directly is key to their success and to the broader growth of the electric vehicle market in the U.S. They also plan to engage in dialogues to foster changes in the state's restrictive sales regulations to enhance the customer experience and economic prospects in the region.