Volkswagen’s U.S. CEO steps down to lead its Scout EV brand

Scott Keough, the CEO of Volkswagen Group of America, is stepping down to lead the Scout brand.

Scout will be led by Keough, who has been the president and chief executive of Volkswagen Group of America for the past year. On September 1, he will be replaced by a new executive chairman.

The new EV brand will be named after the International Harvester Scout.

Volkswagen will invest more than 100 million dollars in Scout in order to double its market share in the US by the end of the decade.

Volkswagen's MEB modular EV platform, a flexible system that underpins vehicles such as the Volkswagen ID.4 and audi Q4 e-tron compact SUVs and allows Volkswagen Group brands to share costs and boost efficiency won't be used in Scout.

The pickup truck will be similar to the Ford Maverick, according to Volkswagen. The strategy gives the automaker access to the strong U.S. pickup segment without competing against full-size segment stalwarts.

Volkswagen will make the ID.4 at its factory in Tennessee, even though the company hasn't said where it will produce Scout models.

Herbert Diess, CEO of Volkswagen Group, said the creation of the new brand will be pivotal in seizing the historic market opportunities in the U.S.