Latest news with #ScoutMotors
Yahoo
3 days ago
- Automotive
- Yahoo
Editorial: Money talks with Florida's new attorney general
Tallahassee's dealership-driven car sales legislation made Tesla a winner in 2023 by allowing it to bypass dealerships and sell cars directly to Floridians, even while banning the practice for others. Florida Attorney General James Uthmeier intends to make another automotive startup, Scout Motors, a loser for just thinking about it. That's no surprise. Since Gov. Ron DeSantis appointed his ex-chief of staff to the state's top legal post, Uthmeier has repeatedly flexed state power to choose winners and losers while winking at fairness and accountability. When it comes to cars, Uthmeier is with wealthy dealers — not cost-conscious car buyers. In this case, Scout Motors plans to revive the discontinued but popular Scout truck brand, with electric vehicles. The U.S. subsidiary of Volkswagen bought billboard space in Miami and Fort Lauderdale and invited people to pay a reservation fee of $100. The money secures the right to buy a truck or SUV directly from Scout. Buying cars directly from manufacturers instead of through dealers is a boon for buyers. No dealer haggling. No murky pricing. Dealers hate it, of course. They argue consumers are best served by the middleman system of dealerships started in 1889. Years of research poke holes in that idea, and buyers navigating a thicket of add-on dealer costs would disagree. Scout trucks won't roll off an assembly line before 2027. Dealers aren't waiting. Several sued Scout Motors in Miami-Dade, citing Florida's ban on almost all direct sales. Dealers also asked the judge to let them rifle through Scout's business records. They want to find out how many Floridians paid $100 reservation fees. Independent Florida journalist Jason Garcia revealed that Uthmeier's office wrote to Scout, asking how many Florida consumers paid $100 reservation fees and how much money Scout raised. Uthmeier then hopped onto the Attorney General's X account to warn that Scout is hiding the fact that it will not sell cars in Florida. Directly below it was a link to an opinion piece, announcing dealerships are best suited to sell Scout vehicles. The post is inexplicably misleading. Scout hasn't finalized its distribution plan, but it absolutely intends to sell and transport cars directly to Floridians. That's what the dealerships hope to stop. This is not happening in a political vacuum. The unelected, unknown Uthmeier must face voters next year as he'll be up for election. As Garcia details, Uthmeier's office started quizzing Scout Motors after Miami dealership mogul Norman Braman and his wife donated $25,000 to Uthmeier's political committee. Braman Automotive is at the top of the Miami lawsuit. In total, dealerships and their lobbyists have chipped in almost $90,000 to keep Uthmeier in office, according to the Orlando Sentinel. In this case, Scout Motors is the hand-picked loser: It will have to defend itself in the Miami dealership case and answer to the A.G.'s office. But Uthmeier's picks aren't confined to dealerships. Target's Pride Month started a decade ago. Company stock fluctuated both before and after its 2023 promotion turned political. That didn't stop Uthmeier from filing a class action lawsuit, alleging that Target should have signaled that consumer backlash would undercut its stock, devaluing shares held by the state's retirement fund. That fund also owns more than two million shares of Tesla. Its stock price fell sharply this year in large part because Elon Musk's politics hurt the brand. No one is talking about suing Tesla over how the entirely predictable political backlash hurt shareholders. Tesla wins, but Target loses. Then there's the Snapchat lawsuit. The harmful impact of social media on mental health is real. But Uthmeier zeroed in on a business with $5.3 billion in revenue while disregarding social media businesses whose collective revenue is measured in the hundreds of billions, and whose platforms share several problems outlined in the Snapchat suit. Instagram and Twitter have been used to sell drugs. WhatsApp uses disappearing messages. Facebook addiction research is mounting. All platforms manipulate users to keep them scrolling. Uthmeier has spent just over 70 days picking winners and losers. If elected in 2026, he could have eight years to do the same. That's eight banner years for the attorney general's deep-pocketed donors — less so for people who just wanted to buy a new Scout. The Orlando Sentinel Editorial Board includes Executive Editor Roger Simmons, Opinion Editor Krys Fluker and Viewpoints Editor Jay Reddick. The Sun Sentinel Editorial Board consists of Executive Editor Gretchen Day-Bryant, Editorial Page Editor Steve Bousquet, Deputy Editorial Page Editor Dan Sweeney and editorial writers Pat Beall and Martin Dyckman. Send letters to insight@
Yahoo
10-05-2025
- Automotive
- Yahoo
Florida AG Uthmeier enters legal fray over selling cars directly to customers
The politically powerful auto dealerships in Florida have battled for years to protect their turf, seeking help from the Legislature and state courts in their quest to ensure consumers don't buy cars without them. Now they have a new defender in their latest legal fight, attempting to quash a new Volkswagen subsidiary's plans to sell electric trucks directly to drivers: Attorney General James Uthmeier. Uthmeier says plans by Scout Motors to 'circumvent' auto dealers is 'harmful' to state businesses and consumers. But he might have a good reason to take the dealerships' side. Dealerships – and their lobbyists – have donated close to $90,000 to his 2026 campaign, making him just the latest GOP leader to get money from the industry. Uthmeier was appointed this year by Gov. Ron DeSantis to fill the job left open by Ashley Moody's appointment to the U.S. Senate. He must run for the job next year. Several Florida VW and Audi auto dealerships have sued Volkswagen of America challenging the German auto manufacturer's plan to use a direct-sales model for Scout. The lawsuit says such sales are prohibited by Florida law and that Scout is not properly licensed as a manufacturer with the state Division of Corporations. Uthmeier took to social media this week to publicly blast VW and share a letter he'd sent the company in mid-April demanding answers about how many $100 reservations it had taken from Florida residents for its Scout vehicles, which the company says should be available in 2027. His spokesman declined to answer questions about the letter or campaign donations. 'Volkswagen's efforts to circumvent Florida's auto dealers are harmful not only to the state's business community but also to Florida consumers, as they fail to disclose that these new Scout vehicles won't actually be sold in Florida,' Uthmeier posted on X Wednesday. 'That's why my office sent a letter to VW demanding answers. We will stand by Florida's consumers and businesses!' Built by International Harvester, the Scout was a popular competitor to the Ford Bronco and Jeep CJ5 in the 1960s and 1970s. VW acquired the rights to the Scout when it bought Navistar, International Harvester's successor, in 2021. Scout Motors CEO and president Scott Keogh revived the brand and reconceived it as a line of electric sport utility vehicles called the Terra and the Traveler. The company is building a $2 billion plant in South Carolina and expects the first vehicles to roll out in 2027. But its plans to sell directly to consumers, as Tesla does, quickly prompted controversy and pushback from auto dealerships, who'd lose out on sales, Auto Week reported last year. 'There's a lot to talk about with this revival of an iconic SUV brand, and a lot to admire, but it's the sales model that's started a boiling pot of controversy—and is likely leading to lawsuits,' the trade publication wrote in a November story. In February, the owners of several Florida dealerships, including Audi Lakeland, Lakeland Volkswagen, Leesburg Volkswagen, launched legal action against Scout in Miami-Dade Circuit Court. The Florida suit is similar to those in other states, including one filed in April in San Diego by The California New Car Dealers Association against Volkswagen Group and Scout. In Florida, the issue is a 2023 law that bans most automakers from selling directly to their customers. The Florida Automobile Dealers Association pushed hard for the new law, the Florida Politics news website reported. The law created a carve-out for electric car companies Tesla and Rivian but not for those that are a 'common entity' with another manufacturer. Those firms must sell their vehicles through licensed dealers. The dealers and Uthmeier argue Scout is a 'common entity' of VW. Scout's relationship to VW, Uthmeier's April 18 letter says, would prohibit it from leasing or selling a 'motor vehicle to any retail consumer in America.' In its letter, Uthmeier's office asked for a record of all fees Scout Motors has collected from Floridians and the number of agreements executed to see if they follow state law, including Florida's Deceptive and Unfair Practices Act. Keogh has said that Scout is a separate brand and entity from VW, and has the right to sell direct to customers, according to Automotive News. 'We look forward to discussions with the Attorney General,' a Scout spokesman said in an email Friday. Weeks before the letter went out, Uthmeier's political campaign received $31,000 from Norman and Irma Braman of Braman Automotive, a plaintiff in the suit, plus $25,000 from Warner Peacock, CEO of Windermere Ford, which is not listed as a plaintiff. He received an additional $30,000 from the Florida Automobile Dealers Association days after the letter was sent. The automobile association gave more than $1 million to Florida politicians before the Legislature approved the 2023 law, according to the Seeking Rents newsletter, including to a political action committee controlled by the then-president of the Florida Senate. DeSantis collected more than $2 million in campaign funds from dealerships in that same time period, the newsletter reported. Days after the Florida dealers' suit was filed against Scout earlier this year, state lawmakers introduced a bill (HB 429) to make it even easier for dealerships to sue the competition. The Legislature has approved the bill, but not sent it to the governor for his approval.
Motor 1
05-05-2025
- Automotive
- Motor 1
Scout Will Use a Naturally Aspirated VW Engine Made in Mexico
Although range anxiety is gradually becoming less of a problem as technology progresses, it remains a significant concern when shopping for a large truck or SUV. Weight is the main enemy of efficiency and, consequently, range. That's why some automakers are promoting a stop-gap solution until battery technology becomes fully viable for long-range, heavy-duty vehicles. A range-extending gas engine is a temporary fix to unlock those precious extra miles. Scout's new models will primarily be EVs, but there will be an option for a range extender. The engine will be manufactured in Mexico and dubbed 'Harvester' as a nod to the long-defunct company that originally built the Scout. Volkswagen Group's Chief Financial Officer Arno Antlitz disclosed this detail during the first-quarter earnings call, cited by Automotive News . He also noted that the engine will skip turbocharging. Photo by: Scout Motors The four-cylinder engine will be sourced from the VW Group's plant in Silao, Mexico, which has been operational since 2013. Previously, Scout CEO Scott Keogh described the range extender as a 'good, high-output, four-cylinder, small engine.' As for its placement, the turbo-less unit will be mounted behind the rear axle. Scout's Senior Director of Strategy commented that the ICE is 'so far away you don't hear it , you don't feel it, so you still get the sensation of driving a quiet, small electric vehicle.' The body-on-frame Terra pickup truck and Traveler SUV are projected to cover 350 miles in standard guise. With the Harvester option, they're expected to reach the 500-mile mark, but with only 150 miles of pure electric range. While the standard models will come with an estimated 120-kWh battery pack, the Harvester-equipped versions will use roughly half that capacity. In terms of performance, Scout estimates the Terra and Traveler will accelerate from 0 to 60 mph in three and a half seconds. Adding the range extender will increase that time by a full second. The four-cylinder VW engine won't drive the wheels directly; its sole purpose is to serve as a generator, recharging the battery on the go. Scout Traveler Electric SUV 40 Source: Scout Motors Scout is far from the first to adopt a gas engine as a range extender in an EV. The Chevrolet Volt and BMW i3 offered similar setups as early as the 2010s, and the upcoming Ram 1500 Ramcharger will use a larger V-6 in the same role. Scout's parent company, VW, plans to offer range extenders in China first, before bringing the technology to Europe. Although Scout debuted its new models last October, series production won't begin until late 2027. The Terra and Traveler will be assembled at a new $2 billion factory in Blythewood, South Carolina, which is expected to create over 4,000 jobs. Up to 200,000 vehicles could be produced annually, an ambitious goal that Antlitz believes could be achieved, thanks in part to the Harvester version. These Scout models won't really clash with an existing Volkswagen product, considering that the first- and second-generation Amarok are not sold in the United States. The recently announced first-gen model replacement is unlikely to get a US visa either. Additionally, VW doesn't have an off-road, body-on-frame SUV in its portfolio. Scout Terra Electric Pickup Truck 36 Source: Scout Motors The Return Of Scout: Scout Is Back: Meet the Traveler SUV and Terra Pickup Scout's EVs Will Have a Gas Range-Extender Option Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Yahoo
20-04-2025
- Automotive
- Yahoo
Scout hires former Bentley exec as COO, names new production boss
Scout Motors has bolstered its leadership ranks by hiring one veteran Volkswagen Group executive for the newly created role of COO and elevated another to be its production boss. Jan-Henrik Lafrentz joined Scout as COO on April 1. He was previously Bentley Motors' board member for finance and information technology. The British ultraluxury brand in February said Lafrentz was departing for a new position within the VW Group. Lafrentz joined VW Group in 1994 and has held finance, sales and marketing roles at Audi, Seat, MAN heavy trucks and Bentley. Sign up to get our afternoon video email. The video focuses on a new topic in the news each day. Scout said its new COO role will support the company's growth and ambitions as it transitions from EV startup to full-scale operations. 'His deep expertise in automotive finance and operations and his proven leadership will be key as we grow our company and scale our business,' Scout said in an email. In October, Scout revealed its two initial vehicles, the Terra pickup and Traveler SUV, designed and engineered specifically for the U.S., where VW Group has longed for a greater market presence. Lafrentz is based in Columbia, S.C., near where Scout is constructing a $2 billion assembly plant in Blythewood, S.C. He will also spend a substantial amount of time at Scout's R&D center in the Detroit area, a Scout spokesperson said. Scout CFO Chris Condon will report to Lafrentz, the company said. Scout also named Oliver Wollinsky chief production officer. Wollinsky, previously Scout's vice president of production, takes over for Jan Spies, who died in January. Scout broke ground on the assembly plant in February 2024. Output at the Scout Motors Production Center is set to begin in 2027. Wollinsky joined Scout in 2024 after serving as plant manager for the SAIC-Volkswagen joint venture in China. Scout said Wollinsky oversaw the construction of two manufacturing facilities and helped develop VW Group's first EV exclusive production site. Wollinsky also held production roles with Mercedes-Benz. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
CNN
11-04-2025
- Business
- CNN
Republicans are poised to kill tens of thousands of jobs in districts that voted for Trump
Republican Rep. Joe Wilson believes former President Joe Biden's landmark climate law was 'fraud.' He dislikes the tax credits it created for solar power and electric vehicles. He's not opposed to clean energy, he said, he's just not interested in taxpayers funding it. But he is proud of the development of a Scout Motors electric vehicle factory and the 4,000 jobs it stands to create in his South Carolina district. The project, under construction about 15 miles north of Columbia, is relying at least in part on funding from the climate law, but Wilson thinks they'd move forward with the venture even if Republicans carry out Trump's desire to kill the clean energy credits in an upcoming budget vote. 'I have not discussed this with (the company), but it would be my view from my visit there and understanding of what they're doing, I think they're so professional, they can handle it on their own without government subsidy,' Wilson told CNN. 'Scout Motors is here to stay,' a spokesperson said in a statement. 'With that said, the tax incentives that help companies who choose to manufacture great products here in the United States are important for our business. Repealing these tax incentives could have a significantly negative impact on American innovation, American job creation, and the growth of Scout Motors.' Wilson's position reflects the battle brewing between Congressional Republicans: Some vocally defend Biden's tax credits because they're bringing billions of dollars of investment and thousands of jobs to their districts; others want fulfill Trump's promise to terminate the law. Nearly 80% of the investments sparked by the climate law has been in Republican congressional districts, according to data from the nonpartisan think tank Rhodium Group and the Massachusetts Institute of Technology. Republicans represent 14 of the top 20 congressional districts that are set to gain the most jobs. Tennessee, Georgia and the Carolinas have gained most of the new jobs in electric vehicle and battery manufacturing, said Trevor Houser, a partner at Rhodium Group. Unlike Wilson, experts and business leaders aren't bullish the clean-energy ventures can stand on their own. 'We'll see a huge number that get canceled' if the tax credits are killed, Houser said. 'It's hard to predict exactly which facilities will get canceled, but a bunch of them will.' That could devastate Republican voters. 'The worst thing that can happen is these factories get built, open, and either leave a ton of expected growth (and) jobs on the table — or they close entirely,' said Albert Gore, the executive director of EV trade group the Zero Emission Transportation Association. 'That's a terrible outcome for these districts.' Republican infighting is on the verge of spilling into public view as Congress inches closer to its massive budget proposal, after House Republicans cleared a key procedural hurdle on Thursday. Now the hard work of filling in the budget blueprint while simultaneously making significant spending cuts begins, which is where the fate of the energy tax credits will be determined. Trump has vowed to 'terminate' Biden's clean energy law, dubbing it the 'Green New Scam,' and his administration has attempted to halt several federal grant programs created by the law with varying amounts of success. But it will take an act of Congress to reverse the tax credits that have spurred the investment and jobs in mostly Republican districts. No Republican lawmakers voted for the climate and tax law when it passed in summer 2022, opposing the climate measures as well as unrelated programs that boosted the number of IRS agents to collect tax revenue. Now, many House Republicans acknowledge the vital economic role clean-energy tax credits are playing in their districts. Rep. Mark Amodei, whose Nevada district is poised to gain more than 20,000 jobs in mining, refining and processing lithium for EVs and batteries, told CNN that continuing to fund these facilities in his district is 'fundamental.' A bill that doesn't include these tax credits would be a red line for him, he said. 'This makes good economic development sense, tariff policy sense and trade sense,' said Amodei, who recently met with lithium business leaders in his district. 'If you don't have lithium production, it's like, 'I'm going to see the baseball game, but we don't have a stadium.'' Buddy Carter's district in Georgia is home to a Hyundai electric-vehicle factory that could add more than 8,000 jobs, depending on outstanding funding from IRA tax credits. Carter thinks Republicans 'should take a scalpel to (the clean energy law), and not a sledgehammer.' It's unclear which tax credits he would propose cutting and which he would keep. Carter told CNN the response he has received across the party, including from House Speaker Mike Johnson, has been 'mixed.' House GOP lawmakers who want to keep the tax credits told CNN they have been doing outreach on the issue for months, which has included letters to House GOP leadership, educating members with specific examples of how their districts have benefited and conversations with the Trump administration. 'This is something that I've been talking about for well over a year,' said Rep. Mariannette Miller-Meeks of Iowa, who chairs the Conservative Climate Caucus. The Trump administration's aggressive tariff push has shined a brighter spotlight on the case for the continuation of IRA tax credits. 'Especially now with all the tariffs and the interest in trying to bring manufacturing back to the US, you can't have that manufacturing if you don't have energy and you can't run the plant,' said New York Rep. Andrew Garbarino, who led 21 Republicans in a letter to the House Ways and Means Committee last month calling for the tax credits to be preserved. Garbarino said there is a 'need' for energy from renewables like wind and solar to keep projects powered. 'It takes 10 years to build a natural gas plant,' he added. Rep. Darin LaHood of Illinois, whose district stands to gain nearly 13,000 jobs from projects including a re-opened Stellantis EV assembly plant as a result of IRA tax credits, acknowledged to CNN that there was a 'bullseye' on the legislation since it was not initially passed with bipartisan support. LaHood, who sits on the Ways and Means panel, told CNN the task for Republicans will be figuring out how to not pull the rug out from under businesses that have been counting on and planning around these federal dollars. 'These tax credits are not going to last in perpetuity or until the end of their life currently in the bill. But let's figure out what's the appropriate sweet spot for a reasonable ramp down' LaHood said, emphasizing that approach will vary by sector. Meanwhile, Rep. Randy Weber, who represents a swath of coastal Texas southeast of Houston, is not worried if his district loses over 10,000 jobs related to offshore wind manufacturing and carbon capture that IRA tax credits would bring. 'If we have to give a little, we'll give a little,' Weber told CNN. 'You're talking about jobs, but you're also talking about things that people have disagreement on. Not everybody is for offshore wind. I wish I could tell you they are.' In Tennessee, Ford is building a massive EV and battery factory in Rep. David Kustoff's district, which is part of the reason it stands to gain as many as 18,000 jobs — the most in the nation — from Biden's tax credits. Kustoff says the businesses he represents 'have made investments where they've relied on what was passed in the Inflation Reduction Act.' But, deep in conversations with his fellow Ways and Means Committee members, Kustoff has a less-than-reassuring message to send back home. 'Stay tuned.'
