Volkswagen AG is set to revive its iconic Scout line of SUVs and pickup trucks, originally intended as all-electric vehicles, now focusing primarily on gasoline-electric hybrids. This strategic shift comes in response to changing consumer preferences, with more than 80% of consumers placing a $100 reservation opting for plug-in hybrid versions over fully electric models. Scott Keogh, CEO of Scout, emphasized that the demand for Extended-Range Electric Vehicles (EREVs), which utilize a gas engine to recharge the battery during operation, illustrates a clear consumer preference. He noted that these hybrids can travel up to 500 miles on a single tank, presenting a less complicated alternative to traditional electric vehicles.
The revival of the Scout brand follows Volkswagen’s acquisition of Scout Motors as part of its purchase of Navistar in 2021. Inspired by Ford’s successful reintroduction of the Bronco SUV, VW aimed to bring Scout back with a modern electric twist. However, current market trends show a decline in electric vehicle sales alongside a resurgence in gasoline-powered SUVs, especially amid potential regulatory changes under the Trump administration aimed at reducing incentives for EVs.
With the Scout lineup expected to debut in 2027, VW plans to tap into the nostalgic appeal of classic American trucks, transitioning back to gas-powered vehicles for the first time since production ended in 1980. Despite the absence of the consumer tax credit, Keogh stated the starting price of around $60,000 for the Traveler SUV and Terra pickup would not be reduced.
Scout has amassed over 130,000 non-binding reservations, with 73% for the SUV and 27% for the pickup. Challenges remain for electric trucks market-wide, as skepticism about their battery performance when towing has led many manufacturers, including General Motors and Ford, to reassess their electric truck strategies.
Keogh maintained that while adjustments may be necessary if the Scout pickup struggles, no definitive decisions have been made at this time. Furthermore, VW is exploring the possibility of producing Audi luxury models at its upcoming $2 billion factory in South Carolina, leveraging the platform developed for Scout vehicles.
Targeting a commitment to American manufacturing, Keogh highlighted a recent investment in a $300 million supplier park adjacent to the new factory, emphasizing that the long-term vision for Scout is not swayed by short-term incentives. Ultimately, VW’s strategy reflects a blend of tradition and innovation, with Scout poised to carve out its niche in the evolving automotive landscape.