A new company backed by Volkswagen, Scout Motors unveiled its first electric vehicles, Traveler SUV and Terra pickup truck. Both will be released in 2027. This is an important development for Scout-a brand that was initiated in the United States from 1961 to 1980. Scout has now expressed a desire to strengthen Volkswagen’s foothold on the U.S. market.
Scout was intended to be an EV-only brand, but now appears to change its strategy and make EREVs a part of its portfolio. The reason for this change is simply that its adoption curves for EVs were too slow, and so with rising prices, not enough people bought EVs. Scout CEO Scott Keogh said: “The pivot that we made a number of months ago into offering range extenders definitely was a smart play.”
EREVs use electric motors and battery systems in combination with a more traditional internal combustion engine, which becomes a generator to serve as a range extender when the battery is exhausted. The strategy here is to protect the brand from market vagaries, letting a customer get off on an electrified experience while knowing there’s a safe backup.
Both the Traveler and Terra are going to be in the $50,000 to $60,000 range but incentives will be available. Keogh said the Traveler SUV will make up about two thirds of the initial sales. The vehicles are designed to take on the U.S. market, traditionally one that is the most profitable.
Scout is building a $2 billion manufacturing facility in South Carolina and expects to produce up to 200,000 vehicles per year. It hopes to break even within the first year of its operation-a challenging target, given the well-known financial challenges of getting EV startups off the ground.
In terms of technology, Scout will draw on batteries being provided by a joint venture with the battery cell producer from Volkswagen in Canada. The cars will be built with advanced technical specifications, such as bi-directional charging and an 800-volt architecture to enable fast charging.
In competition, the landscape continues to remain intense with established players Ford and GM already operating in the EV market. Keogh believes Scout will find its differentiation through the price of the product, the appeal of the brand, and the innovation of the products; this may have further models roll into succeeding years.