Scout Terra pickup truck and Scout Traveler SUV concepts
Scout
NASHVILLE, Tenn. — Volkswagen-backed Scout Motors unveiled its first electric vehicles on Thursday and announced plans to expand its lineup to include an emerging type of plug-in hybrid electric vehicle in addition to EV models.
Scout, a former American vehicle brand from 1961 to 1980, initially intended to exclusively offer EVs to help the German automaker increase its presence in the U.S. However, due to slower-than-expected adoption of EVs and higher costs, the brand decided to include extended-range electric vehicles, or EREVs.
“As a startup that moves quickly, we can pivot,” said Scout CEO Scott Keogh, a longtime auto executive who previously led VW’s operations in the U.S. “The pivot we made into offering range extenders a few months ago was a smart move.”
EREVs are essentially a type of plug-in hybrid electric vehicle that includes EV motors, battery cells, and a traditional internal combustion engine to power the vehicle’s electric components when the battery loses its charge. The engine acts as a generator to power the EV components when necessary.
Keogh explained that Scout added EREVs to better protect the brand from market volatility caused by lower-than-expected consumer demand for EVs.
“We believe electrification is the future. The range extender positions it as an EV car, introducing people to electrification while also providing a smart ‘backup plan,'” Keogh stated during an interview on Thursday. “It will drive like an EV.”
Scout has no plans to offer a traditional, non-electric vehicle with only an internal combustion engine.
The company’s first vehicles, a full-size pickup truck, and a large SUV, are set to cover approximately 40% of the highly profitable U.S. sales market.
Keogh aims for the company to achieve profitability within the first full calendar year after the initial production of the vehicles, which will be manufactured at a $2 billion plant under construction in South Carolina.
“These two segments, from this size pickup truck to this sized SUV… these are the most profitable segments in the world,” Keogh mentioned.
If Scout manages to be profitable within that timeframe, it will be quite a success, as current EV startups such as Rivian Automotive and Lucid Group are losing thousands of dollars on each vehicle they produce after several years.
Keogh also stated that the recently announced software deal between VW and Rivian will not impact Scout’s operations. He sees the $5 billion software deal, which includes the establishment of a joint venture, as an exciting opportunity for Scout.
Scout’s South Carolina plant is expected to have a production capacity of 200,000 vehicles. The company plans to use batteries from VW’s joint venture battery cell manufacturer in Canada, as batteries are the most expensive component of an electric vehicle.
The company opened reservations for the vehicles on its website on Thursday night. Scout intends to sell the vehicles directly to consumers rather than through a traditional franchised dealer network like VW does in the U.S.
New SUV, truck
Scout’s first two vehicles, the Traveler SUV, and Terra pickup truck are expected to be available in 2027.
The company unveiled “production-intent concept vehicles” on Thursday outside of Nashville, Tennessee.
Both the Traveler and Terra are projected to have starting prices between $50,000 and $60,000 with available incentives, according to Scout. Keogh mentioned that pricing for the EREVs is anticipated to fall within that range as well. He did not disclose whether they would be more or less expensive than the all-electric models.
The Traveler SUV is expected to make up two-thirds of the company’s initial sales, Keogh revealed.
The EREV vehicles are set to offer over 500 miles of range, compared to the 300 miles of range for the all-electric models.
The designs of the Traveler and Terra are modernized versions of former Scout vehicles, featuring similar design elements but in sleeker, more stylish exteriors. The interiors boast large horizontal screens and soft-touch materials.
VW acquired the Scout trademark and name after the global conglomerate’s acquisition of Navistar, a successor of Scout’s original owner International Harvester, in 2021.
Fully electric Scout vehicles are designed to climb 100% grades, accelerate from 0-60 mph in as fast as 3.5 seconds, and offer nearly 1,000 lb.-ft. of torque, according to the company.
Scout stated that the vehicles will utilize the North American Charging Standard, an 800-volt architecture with up to 350-kilowatt charging capability, and will support bi-directional charging, allowing the vehicle to function as a generator.
Tough market, competition
The SUV is expected to compete with traditional off-road SUVs from Jeep, as well as the Ford Bronco and Toyota Land Cruiser. It is larger than Jeep’s well-known Wrangler, which is currently offered as a plug-in hybrid electric vehicle.
The truck is a full-size pickup, a segment currently dominated by Ford, General Motors, and Stellantis’ Ram brand. However, the electric pickup market where Scout will compete is still evolving.
Automakers like GM and Ford hurried to launch all-electric pickup trucks early in this decade to rival several EV startups, many of which never materialized, as well as Tesla. Stellantis is expected to introduce all-electric and EREV full-size pickups next year.
After the initial rush to market, sales slowed down. Similar to the overall EV industry, these large vehicles went from commanding significant price premiums to being heavily incentivized.
During the first half of this year, the electric “truck” market, including SUVs, accounted for nearly 58,000 vehicles sold, according to estimates from Motor Intelligence. This represents less than 1% of the approximately 7.9 million light-duty new vehicles sold during that period in the U.S., but it marks a 35% quarterly increase from the first to the second quarter.
Keogh believes that Scout can stand out in the market with its products, competitive pricing, and brand appeal. He mentioned that additional Scout products are expected to follow in the coming years.
“Could we downsize in the future? Absolutely,” he said. “You want to hit the bullseye first. And I think we’ve done that with these two vehicles.”