The California New Car Dealers Association (CNCDA) has fired the opening round in a broader legal assault on Scout Motors over the new Volkswagen subsidiary’s plan to adopt Tesla’s direct-sales strategy for its forthcoming Traveler SUV and Terra pickup.

Scout has mostly grabbed positive attention for its new Terra and Traveler by combining a classic nameplate and styling with electric powertrains. But the new brand has also drawn the ire of the Califonia New Car Dealers Association (CNCDA) for a different reason: direct car sales.

A dealership group in California has sent Volkswagen a cease-and-desist letter over Scout’s direct-to-consumer plans. The dealers contend the move would violate state law and threaten their livelihoods.

The association believes the VW Group's involvement legally restricts the brand from cutting out the middleman.