Scout Motors CEO Defends Direct-to-Consumer Sales Model

Keogh says legal challenges won't stop the brand's plans to sell EVs and EREVs directly to customers.

Published on Mar. 4, 2026

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The head of Volkswagen's revived Scout Motors brand, Scott Keogh, says the company is moving forward with its plan to sell vehicles directly to consumers, despite legal challenges from some dealers. Keogh revealed details about Scout's upcoming all-electric Traveler SUV and Terra pickup, which will be offered in both EV and extended-range electric vehicle (EREV) versions. The brand has already received 160,000 reservations, with the Traveler accounting for about 75% of those. Keogh believes Scout's blend of "old world" and "new world" features will appeal to customers across the powertrain spectrum, from EV to internal combustion.

Why it matters

Scout's direct-to-consumer sales model is a departure from the traditional franchise dealer system, which has faced legal challenges from some dealers. However, Keogh argues this approach is more efficient and cost-effective, especially for a relatively low-volume brand like Scout. The success of this strategy could have broader implications for how new automotive brands, particularly those focused on electrification, choose to reach customers in the future.

The details

Scout Motors is building a manufacturing facility in Blythewood, South Carolina with an annual production capacity of about 200,000 vehicles. The first models expected to roll off the line in 2028 are the all-electric Traveler SUV and Terra pickup. Reservations for the vehicles are currently running about 75% for the Traveler and 25% for the Terra. Keogh says the EREV versions, which can travel up to 500 miles on a charge, are accounting for about 80% of reservations, while the EV versions make up 20%.

  • Scout Motors is expected to begin production of the Traveler SUV and Terra pickup in 2028.
  • The company is currently accepting reservations for the vehicles through its website.

The players

Scott Keogh

President and CEO of Scout Motors, a Volkswagen-owned brand reviving the Scout name. Keogh has deep experience in the automotive industry, previously working at Volkswagen and Audi.

Scout Motors

A Volkswagen-owned brand that is reviving the Scout name and plans to sell all-electric and extended-range electric vehicles directly to consumers, bypassing the traditional franchise dealer model.

Erin Keating

Executive analyst at Cox Automotive, who believes Scout's direct-to-consumer strategy could make sense for a relatively low-volume brand.

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What they’re saying

“We have our plan. We're executing our plan now. Going to continue to execute our plan.”

— Scott Keogh, President and CEO, Scout Motors (Forbes)

“It's got to be conquesting every brand right now. We even know this year, in 2026, we're going after volume chasing when we know that the sales are actually going to be down at least. We're projecting that at Cox Automotive, that's the name of the game, and they have a compelling product.”

— Erin Keating, Executive Analyst, Cox Automotive (Forbes)

“The direct to consumer business, has proven to work, at least with these power trains and the new entrance in low volume. So even if it becomes like, hey, let's start with where we've been given permission, and work our way through it, maybe work through service stations or something like that in connection with dealers, maybe that will smooth things over. I don't know, but I have faith that they're going to probably take it to the limit.”

— Erin Keating, Executive Analyst, Cox Automotive (Forbes)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Scout Motors to continue its direct-to-consumer sales model in the face of legal challenges from some dealers.

The takeaway

Scout's direct sales approach represents a significant shift from the traditional franchise dealer model, and its success could influence how other new automotive brands, especially those focused on electrification, choose to reach customers in the future. The company's blend of "old world" and "new world" features in its upcoming Traveler SUV and Terra pickup appears to be resonating with a diverse set of customers, from EV enthusiasts to those still driving internal combustion vehicles.