A resurrected, electrified automotive brand is preparing to begin selling the SUVs made at its forthcoming South Carolina factory in two years’ time.
But barring a change in state law, residents of the Palmetto State won’t be among its customers — at least directly.
CarScoops noted recently that South Carolina is one of the some 20 states that continue to restrict direct-to-consumer vehicle sales. Those policies, which require cars to be sold by dealerships, date back to mid-century legislative efforts to protect dealers from auto industry giants.
Most Read on IEN:
- Steelmaker's Skeleton to Save Historic Ship From Crumbling
- How Panasonic Makes Products Out of Used Home Appliances
- Bridgestone Closing Tire Plant in Tennessee, 700 Workers Face Layoffs
- PODCAST: Molson Rejects Brewery Bid; Battery Plant Fire; John Deere Sued
In the modern era, however, it has meant that would-be rival carmakers embracing a direct-to-consumer model — most famously Tesla and fellow EV startup Rivian — are officially unable to sell their cars across a wide swath of the country.
Joining them soon could be another — sort of — startup. Scout Motors announced in 2023 that it planned to begin making electric SUVs, inspired by the original Scout vehicles of the 1960s and ‘70s, at a new plant near Columbia, South Carolina.
The $2 billion facility in Blythewood is being built with the help of some $1.3 billion in state funding, and officials expect the project to create around 4,000 jobs.
Sales of Scout’s EVs are expected to start in 2027, and the company — which is backed by Volkswagen — is reportedly hopeful that the state’s regulatory landscape could change before then: lawmakers have introduced a bill that would enable Scout, Tesla and other direct-to-consumer auto companies to operate in South Carolina — amid what will assuredly be fierce opposition from dealer groups.
Should that measure fall short, of course, restrictions in one state don’t mean that prospective buyers can’t procure one in a state that does. Both of South Carolina’s neighbors, it should be noted, allow direct car sales in some form.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.