VW’s US Dealers Sue Over Plan to Leave Them Out of Scout Sales

Volkswagen AG is being sued by two US dealerships who are challenging a plan to sell Scout Motors vehicles directly to consumers, bypassing their showrooms.

The plan is an alleged deliberate breach of contract, according to a class-action complaint from two dealers filed in a US district court in Virginia on Tuesday. The revived Scout brand plans to start production of trucks and SUVs next year and has opened online reservations for a $100 fee.