Scout Terra pickup truck and Scout Traveler SUV concepts
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NASHVILLE, Tennessee – Volkswagen-backed Scout Motors unveiled its first electric vehicles on Thursday and the brand announced plans to expand its lineup to include a variety of plug-in hybrid electric vehicles in addition to EV models.
Scout, a former American vehicle brand from 1961 to 1980, was expected EVs only offered The German automaker is looking to expand its presence in the US. However, the slower-than-expected adoption of electric vehicles and higher costs have led to a change in direction and the introduction of electric vehicles with extended range, or EREVs.
“Being a fast-moving startup, we can pivot,” Scott Keogh, the longtime auto executive who ran VW’s operations, told CNBC Scout. “The pivot we made a few months ago to offer a range extender was definitely a smart play.”
EREVs are basically a type plug-in hybrid electric vehicle. They include EV motors and battery cells, as well as the traditional internal combustion engine to power the vehicle’s electrical components when the battery loses power. The engine acts as a generator to power the EV components when needed.
Scout Terra pickup truck concept
Keogh said Scout added EREVs to better protect the brand from any market volatility among the less-than-expected. consumer demand for EVs.
“We think electrification is the future. The range extender sets it up as an EV car, so it introduces people to electrification, but it has, let’s say, a super smart ‘backup plan,'” he said in an interview Thursday. “It will drive like an EV.”
He said Scout has no plans to offer a traditional non-electric vehicle with a single internal combustion engine.
The company’s first vehicles—a full-size pickup truck and large SUV—will cover about 40 percent of the highly profitable U.S. sales market.
Keogh said the company aims to be profitable in operation for the first full calendar year after initial vehicle production. 2 billion dollar plant that is being built in South Carolina.
“If you look at these profit pools, these two areas, from this size truck to this size SUV … these are the biggest profit pools in the world,” Keogh said.
Scout Traveler SUV concept
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Being profitable in that period would be quite successful, like current EV startups Rivian Automotive and Light Team they lose tens of thousands of dollars on each vehicle they produce after several years.
Meanwhile, Keogh said the announced software deal between VW and Rivian will not affect Scout’s operations. He described $5 billion software deal, which includes the creation of a joint venture, as an “exciting opportunity” for Scout.
“It’s good for scaling. It’s good for technology. It’s good for everything,” Keogh said.
Scout’s South Carolina plant is expected to have a production capacity of 200,000 vehicles. The Scout is expected to use batteries — the most expensive part of an electric vehicle — made by VW’s Canadian joint venture battery cell manufacturer.
The company opened bookings for the vehicles on its website on Thursday night. Scout plans to sell the vehicles directly to consumers, rather than through a traditional franchised dealer network as VW does in the US.
New SUV, truck
Scout’s first two vehicles will be the Traveler SUV and the Terra pickup truck, which is scheduled to arrive in 2027.
The company revealed “production-oriented concept vehicles,” meaning they’re expected to be largely the same vehicles on sale, on Thursday outside Nashville, Tenn.
The interior of the Scout Traveler SUV concept
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Both the Traveler and Terra are expected to start between $50,000 and $60,000 with available incentives, according to Scout. Keogh said EREV prices are also expected to be in that range. It doesn’t mean they will cost more or less than electric models.
Traveler SUVs are expected to account for two-thirds of the company’s initial sales, Keogh said.
EREV vehicles will have a range of more than 500 miles, according to the company, compared to 300 miles of range for all-electric models.
The Traveler and Terra designs are modernized versions of the former Scout vehicles. They have similar design features, but with sleeker, sleeker exteriors. The interior of the vehicles features large horizontal screens and soft-touch materials.
VW acquired the Scout brand and name from global conglomerate Navistar, the successor to Scout’s original owner International Harvester, in 2021 for $3.7 billion.
Scout Traveler SUV concept
The all-electric Scout vehicles offer 100% acceleration and 0-60 mph in 3.5 seconds and nearly 1,000 lb-ft. at the time, the company said.
Scout said vehicles will use it North American standard cargo800 volt architecture, with 350 kilowatt charging capacity, and will be capable of bi-directional charging that will allow the vehicle to act as a generator.
Tough market, competition
The SUV is expected to compete with Jeep’s traditional off-road SUVs, as well as the Ford Bronco Toyota Land Cruiser It’s bigger than Jeep’s popular Wrangler, which is currently available as a plug-in hybrid electric vehicle.
The truck is a full-size pickup – a segment currently dominated by Ford, General Motors and Stella’s Ram brand But the electric pickup market The market in which Scout will compete is developing.
Automakers like GM and Ford began releasing all-electric trucks earlier this decade to compete against a number of EV startups, many of which never materialized. Tesla. Stellantis is expected to release all-electric and EREV full-size pickups by next year.
Scout Traveler SUV concept
But after the vehicles were brought to market, sales slowed. Similar to the overall EV industry, large vehicles went from being a significant price premium to being highly motivated.
In general, this the electric “truck” market, Including SUVs, nearly 58,000 vehicles were sold in the first half of this year, according to Motor Intelligence estimates. That’s less than 1% of the 7.9 million new light vehicles sold in the U.S. during that time, but a 35% quarter-on-quarter increase from the first quarter to the second, according to the data.
Keogh believes Scout can differentiate itself in the market with its products, lower prices and brand appeal. Additional Scout products are expected to follow in the coming years, Keogh said.
“Can we consider reducing any points in the future? Absolutely,” he said. “You want to throw the first dart in the best place. And I think we’ve done that between these two vehicles.”
