South Carolina is one of about two dozen states that ban manufacturers from selling vehicles directly to consumers and instead require all new autos be purchased through a dealer. Scout would like to see that practice changed nationwide for all EV makers and figured it could start in its new backyard.

Scout Motors' plan to eschew traditional dealerships and sell EVs directly to consumers is running into legal trouble. A group of Volkswagen and Audi

A group of Florida Volkswagen and Audi dealerships filed a lawsuit against Scout Motors over its direct-to-consumer retail model.

A group of Volkswagen and Audi dealerships in Florida have filed a lawsuit against Scout Motors over its direct-to-consumer sales model. The lawsuit alleges that Scout shouldn’t be viewed as separate from other VW Group brands.

Under Florida law, even a deposit is considered a sale. Audi and VW dealers in the state aren't having it. S cout’s plan to sell its cars directly to consumers is already facing

The lawsuit is believed to be the first formal legal challenge on behalf of VW and Audi dealers over Scout Motors' direct-sales model.

A coterie of Florida car dealers filed a lawsuit this week against Scout Motors over its direct-to-consumer sales model. The complaint alleges that Scout, which operates under the Volkswagen Group, is in violation of Florida law which blocks automakers from trying to bypass dealers by selling directly to consumers.