Auto dealer groups to challenge Scout Motors decision to sell directly to US consumers

(Reuters) – Groups representing U.S. auto dealers said Friday they plan to challenge Volkswagen (ETR:)’s Scout Motors decision to sell directly consumers, bypassing independent retailers.

The National Automobile Dealers Association said it and state associations “will challenge this and all attempts to sell direct in courthouses and statehouses across the country.”

Scout said on Thursday it would join electric vehicle manufacturers like Tesla (NASDAQ:) in forgoing a traditional independent dealer network in favor of directly selling and servicing vehicles, and it pledged full price transparency.