NASHVILLE, Tenn. — Scout Motors, Volkswagen’s recently revived brand, debuted its first electric vehicles (EVs) on Thursday, the Traveler SUV and Terra pickup truck, both slated for release in 2027. Initially aimed at a purely EV lineup, Scout Motors is now incorporating plug-in hybrid models as consumer adoption rates for EVs continue to lag expectations.

The introduction of the extended-range electric vehicles (EREVs) — essentially plug-in hybrids equipped with internal combustion engines to extend battery range — marks a strategic pivot for Scout. The brand aims to secure a foothold in the competitive U.S. market as it seeks to appeal to EV newcomers and enthusiasts alike.

“We believe electrification is the future, but this pivot to EREVs provides a flexible option for consumers,” Scout CEO Scott Keogh explained in an interview. “These models drive like EVs, but the range-extending engine ensures reliability even in volatile market conditions.”

Expanding Beyond Pure EVs: The Range-Extending Advantage

Unlike traditional hybrids, EREVs operate as electric vehicles until the battery is depleted, at which point a combustion engine powers the EV components. This feature appeals to drivers who may be hesitant to switch to an all-electric vehicle due to range anxiety, a common concern given the current charging infrastructure in the U.S.

Keogh noted that the addition of EREVs aligns with Scout’s agile approach as a startup. “The shift to range extenders made sense in today’s market,” he said. “It’s electrification with a ‘backup plan.’”

Strategic Production and Market Ambitions

Scout’s Traveler and Terra models will be produced in a $2 billion facility in South Carolina, targeting an annual capacity of 200,000 vehicles. The company anticipates breaking even within its first full year of production, leveraging Volkswagen’s joint venture battery supplier in Canada to keep costs manageable.

Scout plans to sell these vehicles directly to consumers, skipping traditional dealership models. The Traveler SUV and Terra truck are anticipated to start between $50,000 and $60,000, comparable to high-end plug-in hybrids and EVs. The EREVs are projected to deliver over 500 miles per charge, significantly surpassing the estimated 300-mile range of the all-electric versions.

Competitive Landscape: Scout Targets Iconic Off-Road and Truck Segments

The Traveler and Terra vehicles are designed to compete with robust, off-road-friendly models from Jeep, Ford, and Toyota, specifically pitting the SUV against the Jeep Wrangler and the truck against market-leading pickups from Ford and General Motors. The revival of the Scout brand, known for its rugged American design from 1961 to 1980, could resonate with buyers drawn to classic off-road vehicles.

To enhance its market appeal, Scout has designed the vehicles to handle steep grades and deliver rapid acceleration. The models will also feature North American Charging Standard compatibility and bi-directional charging, enabling the vehicles to function as generators.

A Shifting Market: EV Demand and Regulatory Challenges

Volkswagen acquired the Scout trademark through its 2021 acquisition of Navistar. Although Scout’s EV strategy aligns with the Biden administration’s push for greater EV adoption, sales growth has slowed as consumers face limited charging infrastructure and persistent concerns about range. Scout is one of many automakers pivoting to meet fluctuating demand by diversifying with hybrid offerings.

Analysts estimate the U.S. EV market remains less than 1% of total new vehicle sales, though the electric truck and SUV segment grew by 35% from Q1 to Q2 this year. As major automakers flood the market with electric and hybrid trucks, Scout seeks to leverage brand nostalgia and competitive pricing.

Keogh remains optimistic, hinting at future models beyond the Traveler and Terra that may appeal to a broader range of customers. “We believe we’re entering the market with two models that best fit the largest consumer segments,” he said, “and we’re ready to adapt as the market evolves.”

With an eye on consumer demand, Scout Motors is betting its flexible approach and blend of electric and hybrid options will resonate with an audience eager for dependable and innovative American-made vehicles.

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