California Dealers Sue Volkswagen Over Scout Model and Direct Sales

A legal dispute has erupted in California between local auto dealers and Volkswagen. Dealers representing automotive interests in the region have filed a lawsuit against the German automaker, claiming that its plans to sell the electric Scout SUVs directly to consumers violate existing car sales laws. The dealers argue that their business interests are harmed by Volkswagen's intentions to launch its vehicles directly in the market, which could potentially reduce their profit margins and tilt the competitive landscape in favor of the manufacturer.

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