Volkswagen's revived Scout brand has garnered significant attention, amassing over 50,000 refundable reservation deposits for its upcoming electric vehicles (EVs). This surge in interest comes as part of the automaker's broader strategy to expand its market share in the United States across its various brands. The Scout brand, which originally operated from 1961 to 1980, aims to tap into the growing demand for electric pickups and SUVs.
In October, Volkswagen unveiled production-intent models of the Scout Terra pickup truck and the Traveler SUV, marking a pivotal moment for the brand's resurrection. Both vehicles are scheduled to hit the market in 2027, with prices expected to start below $60,000. The overwhelming response to the reservation system has exceeded the expectations of Scout CEO Scott Keogh.
Approximately 70% of the reservations have been made for the Traveler SUV, aligning with company projections. Keogh noted that customer feedback has been encouraging, stating, "There's been good reaction to the EREV." Scout plans to offer Extended Range Electric Vehicles (EREV) that will boast an impressive range of over 500 miles. Additionally, its all-electric models are projected to provide up to 350 miles per charge.
Scout's ambitious plans include leveraging software and electrical architecture developed through a $5.8 billion joint venture between Rivian and Volkswagen. This partnership is expected to enhance the performance and technology embedded in Scout's vehicles. Furthermore, the company anticipates sourcing batteries from a Volkswagen joint venture battery cell manufacturer based in Canada.
Volkswagen CEO Oliver Blume emphasized the positive market response, stating, "The market response has been very, very positive." This sentiment reflects the company's optimism as it seeks to improve its current U.S. market share, which stands at about 4%.
In addition to enhancing brand recognition and advancing vehicle engineering, Scout is actively working on completing a $2 billion manufacturing facility in South Carolina. The new plant is set to have an annual production capacity of 200,000 vehicles, positioning Scout as a formidable player in the EV landscape.
To secure a spot in line for their desired model, customers need to submit a $100 refundable deposit. This strategy not only gauges consumer interest but also fosters engagement with potential buyers ahead of the official launch.
As Volkswagen continues to navigate the competitive EV market, the revival of the Scout brand appears timely. The company's commitment to innovative technologies and sustainable practices aligns with shifting consumer preferences towards electric vehicles.
