Volkswagen Scout Motors unveils first EV, plans for plug-in hybrid

Nashville, Tennessee — VolkswagenScout Motors unveiled its first electric vehicle Thursday and announced plans for the brand to expand its lineup to include a new type of plug-in hybrid electric vehicle in addition to EV models.

Scout, an American car brand from 1961 to 1980, was expected to offer EVs exclusively as the German automaker sought to expand its presence in the United States, but this changed due to slower-than-expected EV adoption and higher costs. Of course, this also includes long-range electric vehicles (EREVs).

“It’s a fast-moving startup, so it can change direction,” Scout CEO Scott Keogh, a longtime auto executive who previously led VW’s business in the U.S., told CNBC. “The pivot we made a few months ago to deliver a range extender was definitely a smart play.”

EREV is basically a type of plug-in hybrid electric vehicle. This includes the EV motor and battery cells, as well as the traditional internal combustion engine that powers the vehicle’s electrical components when the battery loses energy. The engine essentially acts as a generator to power the EV components when needed.

Keogh said Scout added EREV to better protect the brand from market volatility amid lower-than-expected consumer demand for EVs.

“We think electrification is the future. The Range Extender introduces people to electrification by setting it up as an EV car, but with very smart features like ‘backup plan,'” he said in an interview Thursday. “It will drive like an EV.”

He said Scout has no plans to offer traditional, non-electric vehicles with only internal combustion engines.

The company’s first vehicles, full-size pickup trucks and full-size SUVs, will account for about 40% of the lucrative U.S. sales market.

Keogh said the company aims to achieve operational profitability within the first year of initial production of the vehicles, which will be produced at a $2 billion plant under construction in South Carolina.

“If you look at these profit pools, these two areas, from pickup trucks of this size to SUVs of this size… these are the largest profit pools in the world,” Keogh said.

Remaining profitable over that period, like the following current EV startups, would be a significant success. rivian cars and Lucid Group After a few years, you’re losing tens of thousands of dollars for each car you produce.

Meanwhile, Keogh said the announced software deal between VW and Rivian will not affect the Scout’s operations. He described the $5 billion software deal, which included forming a joint venture, as an “exciting opportunity” for Scout.

“It’s good for scale, it’s good for technology, it’s good for everything,” Keogh said.

Scout’s South Carolina plant is planned to produce 200,000 vehicles. Scout expects to use batteries, the most expensive component in electric vehicles, from VW’s joint venture battery cell manufacturer in Canada.

The company began taking reservations for the vehicles through its website Thursday night. Scout plans to sell its vehicles directly to consumers rather than through a traditional franchise dealer network like VW in the United States.

Scout’s first two vehicles will be the Traveler SUV and Terra pickup truck, scheduled to arrive in 2027.

The company unveiled a “production intent concept vehicle” on Thursday that is expected to be the same vehicle it is selling outside of Nashville, Tennessee.

Both the Traveler and Terra are expected to start between $50,000 and $60,000, including incentives, according to Scout. Keogh said prices for EREVs are also expected to be in this range. He declined to say whether the price would be higher or lower than a purely electric model.

Keogh said he expects the Traveler SUV to account for two-thirds of the company’s initial sales.

According to the company, EREV vehicles have a range of more than 500 miles, while pure electric models have a range of up to 300 miles.

The design of the Traveler and Terra is a modernized version of the previous Scout vehicle. The design characteristics are similar, but the appearance is softer and more stylish. The interior of the vehicle features a large horizontal screen and soft-touch materials.

VW acquired the Scout trademark and name after the global conglomerate acquired Navistar, the successor to Scout’s original owner International Harvester, in 2021 for $3.7 billion.

The all-electric Scout vehicle aims to climb 100% inclines, accelerate from 0 to 60 mph in 3.5 seconds, and deliver nearly 1,000 lb.-ft. of torque, the company said.

Scout said the vehicle will use: The North American charging standard, an 800V architecture with up to 350kW charging capability, allows bi-directional charging so the vehicle can act as a generator.

The SUV is expected to be a competitor to traditional off-road SUVs like the Jeep as well as the Ford Bronco. toyota Land Cruiser. It is larger than Jeep’s well-known Wrangler, which is currently being released 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 in which the Scout will compete is still a developing market.

Automakers such as GM and Ford rushed to launch pure electric pickup trucks in early 2010 to compete with several EV startups. tesla. Stellantis plans to launch pure electric and EREV full-size pickups by next year.

However, after rushing the vehicle to market, sales slowed. Like the entire EV industry, larger vehicles have gone from carrying a significant price premium to receiving high incentives.

The electric “truck” market, including SUVs, saw about 58,000 vehicles sold during the first half of this year, according to estimates from Motor Intelligence. That’s less than 1% of the roughly 7.9 million new light vehicles sold in the U.S. during that period, but represents a 35% increase quarter-on-quarter from the first quarter to the second, according to the data.

Keogh believes Scout can differentiate itself in the market through its products, affordable prices and brand appeal. Additional Scout products are expected to follow in the coming years, Keogh said.

“Would we consider downsizing in the future? Absolutely,” he said. “You want to throw your dart at the best spot first, and I think we did that between these two cars.”