VW Revives Scout Line, Focuses on Hybrid Models Over EVs
Volkswagen AG is set to revitalize its Scout line of SUVs and pickup trucks, shifting its focus towards hybrid models rather than electric vehicles. This decision comes in response to consumer preferences, with over 80% of those reserving a Scout vehicle choosing plug-in hybrid versions.
Scout Line Overview
Originally envisioned as a lineup of electric vehicles, the Scout brand’s new strategy includes extended-range electric vehicles (EREVs). These models feature a gasoline-powered internal combustion engine, which assists in recharging the battery while driving. Scott Keogh, CEO of Scout, stated, “The market clearly has spoken, without a doubt, and they like the EREV technology.” The hybrid models can achieve up to 500 miles on a single tank of gasoline.
Market Trends and Consumer Insights
- Traditionally, the Scout brand ceased production in 1980.
- VW acquired Scout Motors through its purchase of Navistar in 2021.
- In 2027, the Scout line is projected to return as a gas-fueled SUV and pickup truck lineup.
This pivot aligns with a notable decline in electric vehicle demand in the United States. The fading interest in EVs coincides with political changes aimed at rolling back regulations favoring electric vehicles, impacting the marketplace for gas-powered models.
Reservations and Pricing Strategy
Scout has garnered more than 130,000 non-binding reservations in the past year, predominantly for the SUV model, which constituted 73% of the total. Despite changes in the EV landscape, Keogh confirmed there would be no reduction in the starting price of around $60,000 for its Traveler SUV and Terra pickup due to the elimination of consumer tax credits.
Future Plans and Production Details
Volkswagen plans to commence production at its $2 billion factory in South Carolina in late 2027. Keogh mentioned that Audi is exploring the possibility of developing a U.S.-centric SUV using Scout’s platform. As part of a broader strategy, Scout will also invest $300 million in a 200-acre supplier park adjacent to the new factory.
Strategic Decisions in Hybrid Models
Keogh emphasized that the elimination of the $7,500 tax credit is a temporary challenge, considering the long-term vision for Scout. He stated, “You don’t build a factory, start a brand, make the investments that we’re making based on money that may or may not be on the table for basically four years.” The company is poised to navigate these changes while focusing on hybrid models over traditional EVs.
