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VW is betting a billion dollars that its EVs can revive this failed SUV brand

Vaseline October 25, 2024

NASHVILLE — In a multibillion-dollar effort to push its way into the lucrative U.S. market for pickups and off-road SUVs, Volkswagen unveiled a pair of flashy electric vehicles under the old Scout brand on a hillside in Tennessee on Thursday.

Intended for production in 2027, the midsize Scout Terra pickup and Traveler SUV were designed to commemorate the rugged Scout vehicles from U.S. agricultural equipment and heavy truck manufacturer International Harvester, built from 1961-80.

VW has coveted the U.S. pickup market for decades, but balked at the enormous costs of developing vehicles tailored to it. The new pair is precisely tailored to the market and a showpiece for VW’s latest EV technology.

The automaker won’t say how much it has invested in the project, but industry observers estimate the cost at around $3 billion.

“Choosing the Scout brand over VW gives it an advantage,” said Stephanie Brinley, chief analyst at S&P Global Mobility. “VW has no heritage for pickups and off-roaders in the US.”

In addition to electric propulsion, the new Scouts will feature components for serious off-road driving and an airy, attractive interior.

“Scout is clearly positioning the vehicles as somewhat premium,” said Stephanie Brinley, chief analyst at S&P Global Mobility. “They have a few years to build buzz and get people thinking about the brand. Just being electric is not enough. By 2027, they must offer more to attract the interest of combustion vehicle owners.”

VW designed and built the Terra and Traveler in Michigan, where the brand is headquartered. It will build them at an assembly plant near Columbia, South Carolina.

Scout Terra pickup at a glance

Prices start under $60,000
Four-door double cab
For sale in 2027
Assembled near Columbia, South Carolina
Expected to qualify for full federal tax credits for electric vehicles and batteries
Four-wheel drive
Platform on frame
Towing capacity of over 10,000 pounds
A payload of almost 2,000 pounds
Predicted battery range up to 350 miles
Available gasoline range extender

Out the door for $50,000 with a 350 mile range?

Prices for the production versions of both vehicles start under $60,000. VW expects them to qualify for full federal tax benefits. While these credits could change by 2027, Scout predicts Traveler prices after incentives will be as low as $50,000, and the Terra as low as $51,500.

“The prices are in the same range as internal combustion engines,” Brinley said. “That eliminates the cost of being compliant, but Scout has a lot of work to do to establish the brand.”

Scout predicts a range of up to 350 miles on a charge. In addition to the fully electric models, a version with a petrol engine should deliver more, namely a range of 800 km. Scout calls the range-extending feature “Harvester,” another nod to the vehicles’ heritage. The German automaker acquired the rights to the Scout name in 2020 when it bought Navistar International, formerly International Harvester.

Scout isn’t saying how big the batteries will be, or how long it will take to charge them, but the vehicles will have Tesla-style charging ports and can accept power up to 350 kW on DC fast charging.

They will also be capable of bidirectional electrical current to power the household during power outages.

Scout Traveler SUV at a glance

Prices start under $60,000
For sale in 2027
Assembled near Columbia, South Carolina
Expected to qualify for full federal tax credits for electric vehicles and batteries
Four-wheel drive
Platform on frame
Towing capacity of over 7,000 pounds
A payload of almost 2,000 pounds
Predicted battery range up to 350 miles
Available gasoline range extender

Similar, but not the same

Scout calls the vehicles unveiled Thursday “concepts,” but they are clearly intended for production with minimal changes.

The vertical noses, long hoods and roofs of the new pickup and SUV are reminiscent of the almost forgotten International Harvester Scouts, which went out of production 44 years ago.

“It’s a new brand to a lot of people, but it has a lot to offer,” said AutoPacific analyst Paul Waatti. “There’s so much focus on off-roading, electric vehicles and nostalgia right now. Three trends come together in Scout.”

The exterior features LED lighting and badges, including ‘Scout’ in illuminated lettering.

The effect is dramatic, with thin lines of white light delineating the flat, rectangular noses and glowing red lines seemingly etched into the tailgate and along the top of the rear window.

The vehicles’ profiles are reminiscent of their namesakes, but with more refined exterior panels that are almost twenty^e century chrome and features refined curves and short overhangs clearly designed to imply and probably provide off-road capability.

They appear to fall on the large side of the midsize pickup and SUV classes, similar to the electric Rivian R1T and R1S.

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Robust technology for off-road driving

Both vehicles will use a new body-on-frame architecture developed specifically for Scout. That type of basic structure, often used in pickup trucks, is associated with workhorse capabilities and off-roading.

The vehicles will also feature locking front and rear differentials, mechanical components that help maintain traction in the most challenging conditions.

Other stats include different suspension options, more than a foot of ground clearance, the ability to ford 3 feet of water, and tires up to 35 inches.

The vehicles will have four-wheel drive and an electric motor on each axle.

3.5 seconds 0-60, plus real switches and dials

Scout isn’t saying how much horsepower they’ll develop, but it promises nearly 1,000 pound-feet of torque and 0-60 mph in just 3.5 seconds.

The Terra pick-up has a 1.5 meter long bed with one 240V and two 120V sockets. The Traveler SUV comes with a horizontally split tailgate to prevent cargo from rolling out and provide shelter from the elements.

There will be a glass roof with an electric sunshade and an electric folding cloth ‘Cabana Roof’.

“There are of course challenges for a new brand, but this tickles many people,” says Waatti.

The interior also features conventional physical switches and dials for many functions, plus a large touchscreen.

The Scouts will come with a “zonal” electrical architecture, which reduces the weight and complexity of the vehicle. That sounds a lot like the critically acclaimed Rivian system that VW recently agreed to use in a multi-billion dollar deal.

Scout will sell the vehicles directly to customers without a traditional dealer network. That bitterly disappointed VW dealers, but the carmaker promises one app, login and password for most aspects of purchasing, service and repair. The brand will have physical showrooms and service centers, but Scout says 80% of repairs can be completed off-site.

Shoppers can reserve a Scout here for a refundable $100.

Contact Mark Phelan: 313-222-6731 or [email protected]. Follow him on Twitter @mark_phelan. Read more at cars and sign up for our car newsletter. Become a subscriber.