VW Group is about to launch a dedicated EV company in the US called Scout that will produce an all-electric pickup and a rugged off-roading SUV geared toward the American consumer.
The company's board of directors will vote on the matter on May 11, according to sources. The proposal will be approved by the board.
VW's presence in the U.S. will be amplified by the launch of the Scout brand, which will be used in electric pickup trucks. The Ford F-150 is the market leader in the full-sized pickup market. The plan is to build a small C-segment truck that is similar to the Ford Maverick.
Sources who asked not to be named because they are not authorized to talk publicly about the proposal said that the new brand would begin producing the two EV by the year 2026.
Sources say that VW will make an initial $100 million investment in the new company. The initial funding will be used to create the structure of the company, set up management and begin bringing employees on board. Sources say that it is possible that some future investment could come from external sources. Private equity or individuals could fund such an effort.
VW Group CEO Herbert Diess could use the Scout brand to hit some ambitious targets. VW wants to double its market share in the U.S. by the end of the decade and become the largest seller of electric vehicles in the world.
VW plans to bring a long-wheel base passenger model of the ID Buzz to the North America market in 2024. VW wants to tap into a market that has been stagnant for years until the all-electric ID.4 arrived in 2021.
The idea of VW resurrecting Scout as an EV off-roader was brought up by Volkswagen Group of America Chief Operating Officer Johan De Nysschen during a conversation with the media. VW gained the naming rights to Scout after its commercial trucking unit Traton merged in summer 2021. International Harvester stopped making Scout in 1980 and went out of business five years later.
The COO thought of a Rivian-like SUV that would be priced at $40,000, a steep discount from the actual Rivian R1S SUV. Two designs for the SUV and pickup mix the old classic Scout with Rivian's aesthetic.
Rendering from VW was shared by an unnamed source.
Scout's underlying platform will be designed for off-road, higher clearance vehicles, according to sources.
It is not known where Scout will be located or where the vehicles will be assembled. It would be unusual for an independent brand to set up shop at a VW plant, especially since these new vehicles will not be built off of the MEB platform.
The MEB is a matrix of common parts that VW Group brands use to improve the efficiency and cost-effectiveness of producing electric vehicles. The Volkswagen ID.3 is an electric car that is only sold in Europe, and the ID.4 SUV is an electric car that is only sold in Europe. The company expects more than 80% by the year 25.
The first Scout- branded vehicles will be built in the U.S. Sources said the platform could be used by other brands. Europe and South America would benefit from the smaller C-segmented-sized truck.
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