Scout has achieved a significant milestone by securing the right to sell vehicles directly to consumers in Colorado. This approval from the Colorado Motor Vehicle Dealer Board allows the new American brand to bypass traditional dealer networks, a move that could reshape the automotive sales landscape in the state.
The board’s decision, announced on October 31, 2026, grants Scout a dealer license that enables it to sell new, used, and wholesale vehicles throughout Colorado. This marks a critical step for the company, which is backed by the Volkswagen Group and has faced considerable resistance from traditional dealership advocates.
New Sales Dynamics in Colorado
The approval positions Scout alongside other direct-to-consumer brands like Tesla, Rivian, and Lucid, which have utilized Colorado’s regulatory environment to their advantage. The state has a unique provision that allows manufacturers without franchise agreements to sell directly to customers, a situation that has generated scrutiny from established dealerships.
Among the notable critics is Matthew Groves, the chief executive of the Colorado Auto Dealers Association. He argued against the decision due to Scout’s financial ties to Volkswagen. While Groves indicated that the association could pursue legal challenges against the ruling, he also expressed a willingness to allow Scout to test its market strategy. “We can just let Scout out to market and see if they can swim,” he stated.
In its ruling, the board clarified that Scout does not qualify as a same-line manufacturer as Volkswagen, Audi, or Porsche, thus allowing it to operate independently.
Looking Ahead: Scout’s Expansion Plans
The approval is a notable victory for Cody Thacker, Scout’s vice president of commercial operations. “Today’s decisive approval by the Dealer Board ensures that we can continue moving forward with our business plans to invest in Colorado, employ Colorado workers, and deliver a modern, customer-focused experience for thousands of future Scout owners in the state,” he commented.
Despite this win, Scout’s future expansion remains uncertain. It has not yet confirmed whether it has secured dealer licenses in other states, but California is reportedly a top priority. The company has been actively seeking approval in California for the past year, recognizing the state’s vast market potential.
Production of Scout’s inaugural models, the Terra pickup and Traveler SUV, is slated to begin in 2027 at a new manufacturing facility near Columbia, South Carolina. This factory is expected to bolster the brand’s production capabilities and align with its direct sales strategy.
As Scout advances its plans, the automotive industry will be watching closely to see how this new approach to vehicle sales unfolds in Colorado and beyond.