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Scout Motors urges DOJ to fight state dealer franchise laws
Scout Motors urges DOJ to fight state dealer franchise laws

Miami Herald

time20-07-2025

  • Automotive
  • Miami Herald

Scout Motors urges DOJ to fight state dealer franchise laws

The Republican Party may be the party of "states' rights," but Scout Motors hopes the current Republican presidential administration will eliminate the state franchise laws that impede its direct-sales strategy, according to an Automotive News report. Scout called on the federal government to do this in an 11-page letter submitted to the Justice Department's Anticompetitive Regulations Task Force by Blair Anderson, the automaker's vice president of government and regulatory affairs. The task force was created in March after president Donald Trump signed executive orders in January and February calling for removing "regulatory burdens placed on the American people." The letter used similar language, calling franchise laws "burdensome restrictions on competition." Car sales in the United States are currently regulated by a patchwork of state laws, some of which allow automakers to sell cars directly to customers. But many states still require franchised dealerships. There's been friction between those dealerships and automakers since Tesla unveiled its direct-sales model over a decade ago. Tesla fought a series of legal battles with franchised dealerships in individual states. Now Scout, which plans to build its Traveler SUV and Terra pickup truck in a new South Carolina factory starting in 2027, is facing similar struggles. A group of Volkswagen and Audi dealerships in Florida filed a lawsuit in February to block Scout's direct-sales plans, and the California New Car Dealers Association (CNCDA) filed a similar lawsuit in April, Automotive News noted. In March, the National Automobile Dealers Association (NADA) also sent a letter to Volkswagen Group CEO Oliver Blume and other executives urging the company to let its members sell Scout vehicles. Scout revives the International Harvester Scout, one of the original SUVs, which the VW Group gained the rights to after its purchase of International's successor Navistar. The new Scout vehicles are rugged off-roaders, with body-on-frame construction, with all-electric or extended-range powertrains. They're also unlike anything in the current VW Group portfolio, and exactly the kinds of vehicles dealerships in truck-loving America are eager to sell. That's likely adding fuel to the fire over the VW Group's attempt to set up a new brand with direct sales, while keeping franchised dealerships for its other brands. In the letter, Anderson said that, as a new manufacturer, Scout shouldn't be forced to adopt the franchised dealership model "especially when the new manufacturer has not asked any dealerships to place any investment in distributing its vehicles, developed a more efficient alternative, and will not sell any vehicles also offered for sale by a franchised dealer." Dealerships don't seem to buy the logic that Scout's clean slate entitles it to a different sales model than its fellow VW Group brands. The question is whether the federal government will and whether, if it does, it actually has the authority to strike down state franchise laws. Copyright 2025 The Arena Group, Inc. All Rights Reserved.

AAM Secures New Business to Support Scout Motors' Iconic SUV and Truck Launch
AAM Secures New Business to Support Scout Motors' Iconic SUV and Truck Launch

Yahoo

time11-06-2025

  • Automotive
  • Yahoo

AAM Secures New Business to Support Scout Motors' Iconic SUV and Truck Launch

DETROIT, June 11, 2025 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) announced it has secured an agreement with Scout Motors to supply front electric drive units (EDUs) and rear e-Beam axles for the much-anticipated launch of the all-new electric Traveler SUV and Terra pickup truck. Both the Scout Traveler SUV and Scout Terra pickup truck will be built on a body-on-frame chassis and configurable with 100 percent battery electric or gasoline fueled range-extended energy systems to give customers the confidence they need to electrify on their terms. "We are honored to support the rebirth of the iconic Scout brand and play a significant role in these important vehicle launches with AAM's award-winning electric drive technology," said AAM Chairman and Chief Executive Officer, David C. Dauch. "Additionally, Scout and AAM share a commitment to American design, engineering and innovation with both companies having a strong presence in the U.S." Scout Motors is accepting customer order reservations now, with initial production of the Traveler and Terra vehicles targeted to begin in 2027. About AAMAs a leading global Tier 1 Automotive and Mobility Supplier, AAM designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in Detroit, MI, with over 75 facilities in 16 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit About Scout MotorsThe Scout, originally produced by International Harvesters from 1961-80, was the world's first utility vehicle capable of both off-road adventure and family duty. It was the 8-day-a-week truck. Scout is now an American icon whose heritage is kept alive by a dedicated community of doers who continue to push their vehicles on the farm, in the wilderness, and on family outings. Scout Motors was formed to craft the next era of trucks and rugged SUVs rooted in the same tradition that made the original Scout an American icon. Scout Motors is revitalizing a legend and returning to American shores. To learn more, visit For more information, contact: Christopher M. Son Vice President, Marketing & Communications, AAM (313) 758-4814 Or visit the AAM website at View original content to download multimedia: SOURCE American Axle & Manufacturing Holdings, Inc.

Scout hires former Bentley exec as COO, names new production boss
Scout hires former Bentley exec as COO, names new production boss

Yahoo

time20-04-2025

  • 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.

What is Scout's "Harvester range extender?"
What is Scout's "Harvester range extender?"

Yahoo

time02-03-2025

  • Automotive
  • Yahoo

What is Scout's "Harvester range extender?"

Scout is still working on building the Traveler SUV and the Terra pickup truck, both of which will be powered exclusively by a battery electric system. While we don't know the battery size yet, the Scout Traveler SUV is supposed to have an 800-volt battery architecture with a 350 kW DC fast charging and bidirectional capability. The pickup and SUV, both capable of an estimated 350-mile range, will share many of the same components, including one that helps extend the models' range. The so-called "Harvester" range-extending system (REX) claims to extend the Traveler and Terra's range to approximately 500 miles, but how does it work?This is not a new idea in the EV world. A while back, the BMW i3 used a scooter motor paired with a tiny gas tank to power an optional REX system hidden in the rear of the vehicle. This system allowed the vehicle to roughly double its range. "To account for different work needs, we're planning to offer the choice of two energy systems: an all-electric system, or a gas-powered range extender called Harvester. The Harvester Range Extender is a generator packaged in the vehicle platform that will recharge the vehicle's high voltage battery. It will extend the expected range to over 500 miles (based on manufacturer estimates, EPA estimates will be provided when available)," Scout Motors said. Scout's parent company Volkswagen has yet to release any technical information about the REX system, but we know they are looking for a cost-effective, lightweight, and rugged setup. This is not an easy ask. Still, it's the best of both worlds. Not only can it truly overland, charge itself, and tow up to 7,000 lbs, the system is bi-directional, an incredibly useful resource that can power just about anything that needs of the biggest enemies of any EV is weight. It's hard enough keeping the weight off when you are dragging a massive battery around, let alone heavy off-road accessories, drag-inducing tires, and boxy shapes. All of these factors hinder an EV's range. A REX system will be heavy, too, which will further affect the range figure. There is also the added complexity of having the REX system. Suddenly, you're back to changing fluids, oiling, and fueling something that creates carbon waste. Perhaps the next focus of EV manufacturers should be how to keep REX systems clean and reliable. Despite these few downsides, I would suspect that Scout's Harvester range extending system will be a popular choice. For many, they will barely use it, while others will rely on it often. I personally like the idea of massive range to not only go way off the beaten path, but also to have the power to return to civilization and/or power up a campsite. We're excited to learn the technical details of the REX system and see improved iterations of it in future EVs. Love reading Autoblog? Sign up for our weekly newsletter to get exclusive articles, insider insights, and the latest updates delivered right to your inbox. Click here to sign up now!

South Carolina bill that could let Scout, other EV brands sell direct to consumer stalls
South Carolina bill that could let Scout, other EV brands sell direct to consumer stalls

Yahoo

time13-02-2025

  • Automotive
  • Yahoo

South Carolina bill that could let Scout, other EV brands sell direct to consumer stalls

A South Carolina bill that would allow Scout Motors, Tesla and other electric vehicle brands to sell directly to consumers appears to have stalled after a committee adjourned debate on it. The labor, commerce and industry subcommittee in the state's House of Representatives held an hourlong hearing on the South Carolina Consumer Freedom Act on Feb. 12. South Carolina law currently prohibits direct-to-consumer vehicle sales. The bill, introduced Jan. 16 in the state's House of Representatives, is designed to apply to manufacturers that haven't previously held a franchise dealership agreement. Sign up to get our afternoon video email. The video focuses on a new topic in the news each day. Because the committee adjourned debate, the bill has been put on ice, according to local media reports. The legislative session began Jan. 14 and is scheduled to run through May 8. South Carolina Gov. Henry McMaster, a Republican, told local media on Feb. 3 that he would sign the bill if it reached his desk. South Carolina State Rep. Mark Smith, a Republican and the bill's lead sponsor, told the South Carolina Daily Gazette after the hearing that it's 'very clear a lot of work needs to be done on this for both sides.' Smith did not return phone calls seeking comment from Automotive News. Scout did not immediately respond to a request for comment. Supporters and opponents of the bill voiced frustration during the hearing. 'Nobody is asking to put franchise dealers out of business,' said Cody Thacker, Scout's vice president of growth. 'We're simply asking South Carolina to remove an antiquated regulation that prevents consumers from making their own economic decisions.' E. Sims Floyd Jr., executive vice president of the South Carolina Automobile Dealers Association, said the South Carolina Consumer Freedom Act is not a freedom of choice bill. Instead, Floyd said, it 'is a serious attempt by Volkswagen to do away with the franchise law.' Three dealers spoke against the bill during the hearing including Marc White, who owns Audi Greenville and Steve White Volkswagen in Greenville, S.C. When Scout first revealed plans to build a manufacturing plant in Blythewood, S.C., in March 2023, White emailed Thacker, a former contact at Audi of America. White told Thacker he would be interested in becoming a Scout dealer in Greenville, going so far as to note that his company had acquired land off of Interstate 85 suitable for a dealership. White said Thacker emailed him a nice message back but said Scout was early in the process of figuring out its retail plans. Thacker, White recalled, said he would keep the dealer in mind. 'I never heard back from Cody about opening that Scout point because Volkswagen had other plans,' White said. Scout in October unveiled prototypes of two vehicles, the Traveler SUV and Terra pickup, and said it would pursue direct-to-consumer sales. White took issue with VW Group's decision to finally bring a pickup to the U.S. market but only via Scout and not through its existing dealer network. White said VW dealers have been asking for a pickup for years and have watched other import brands introduce pickups in the U.S. 'It undercuts the investments that have been made by us dealer partners of Volkswagen,' White said of Scout's retail plans. 'That doesn't sit well with me.' White said he would still build a Scout facility on his property and retail and service those vehicles at his expense. 'It's really a shame the position that Scout has put all of us in, and I hope this committee will ensure this bill will not move forward,' White said. Zach Khan, senior managing policy adviser at Tesla, spoke in support of the bill and said the EV brand has sold more than 13,000 vehicles to South Carolina residents even though buyers have to travel out of state to take delivery of a vehicle. 'Tesla wants to be a much bigger part of the impressive South Carolina economic success story, but we have to be welcomed in the state in order to do so,' Khan said.

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