VW is making a billion-dollar bet that its electric vehicles can revive this failing SUV brand

NASHVILLE – In a multibillion-dollar move to break into the lucrative U.S. market for pickup trucks and off-road SUVs, Volkswagen unveiled two striking electric vehicles under the legacy Scout brand on a hilltop in Tennessee on Thursday.

The mid-size Scout Terra pickup and Traveler SUV, scheduled for production in 2027, are reminiscent of US agricultural equipment and heavy-duty truck manufacturer International Harvester's rugged Scout vehicles built from 1961-80.

VW has coveted the U.S. pickup market for decades but balked at the enormous costs it would incur to develop vehicles tailored to it. The new pair are tailor-made for the market and are also showcases for VW's latest EV technology.

The automaker won't say how much it invested in the project, but industry observers estimate the cost at about $3 billion.

“Choosing the Scout brand over VW gives it an advantage,” said Stephanie Brinley, principal analyst at S&P Global Mobility. “VW has no tradition of pickups and off-roaders in the USA.”

In addition to electric drive, the new Scouts have components for demanding terrain and an airy, attractive interior.

“Scout is clearly positioning the vehicles as somewhat premium,” said Stephanie Brinley, principal analyst at S&P Global Mobility. “You have a few years to create a buzz and get people thinking about the brand. Just being electric is not enough. By 2027, they need to offer more to attract the interest of internal combustion engine vehicle owners.”

VW designed and engineered the Terra and Traveler in Michigan, where the brand is headquartered. They will build them at an assembly plant near Columbia, South Carolina.

Scout Terra Pickup at a glance

Prices start under $60,000
Four-door crew cab
For sale in 2027
Assembled near Columbia, South Carolina
Expected to be eligible for full federal electric vehicle and battery tax credits
Four-wheel drive
Body-on-frame platform
Towing capacity of over 10,000 pounds
Nearly 2,000 pounds of payload
Estimated battery range up to 350 miles
Available petrol-powered range extender

Available for $50,000 and with a range of 350 miles?

Prices for the production versions of both vehicles start under $60,000. VW believes they are eligible for the full federal tax credit. While these credits may change through 2027, Scout predicts prices for the Traveler will start at just $50,000 after incentives, with the Terra at $51,500.

“The prices are in the same range as internal combustion engines,” Brinley said. “This does incur costs as a compliance provider, but Scout still has a lot of work to do to establish the brand.”

Scout predicts a range of up to 350 miles on one charge. In addition to the all-electric models, a version with a gasoline engine to extend the range will provide more performance and enable a range of 500 miles. Scout calls the range extension function “Harvester,” another nod to the vehicles’ tradition. The German automaker gained the rights to the Scout name in 2020 when it purchased Navistar International, formerly International Harvester.

Scout doesn't say how big the batteries will be or how long it will take to charge them, but the vehicles will have Tesla-style charging ports and can handle up to 350 kW of power using DC fast charging.

They will also feature bi-directional power flow to provide household power during power outages.

Scout Traveler SUV at a glance

Prices start under $60,000
For sale in 2027
Assembled near Columbia, South Carolina
Expected to be eligible for full federal electric vehicle and battery tax credits
Four-wheel drive
Body-on-frame platform
Towing capacity of over 7,000 pounds
Nearly 2,000 pounds of payload
Estimated battery range up to 350 miles
Available petrol-powered range extender

Similar, but not the same

Scout calls the vehicles unveiled Thursday “concepts,” but they are clearly intended for production with minimal changes.

The vertical bows, long hoods and roofs of the new pickup and SUV are reminiscent of the almost forgotten International Harvester Scouts, whose production ended 44 years ago.

“It's a new brand for a lot of people, but it has a lot to offer,” said AutoPacific analyst Paul Waatti. “There is so much focus right now on off-roading, electric vehicles and nostalgia. Three trends come together at Scout.”

The exteriors feature LED lighting and plaques, including “Scout” in illuminated lettering.

The effect is dramatic, with thin lines of white light bordering flat, rectangular noses and bright red lines apparently etched into the tailgate and along the top of the rear window.

The profiles of the vehicles are reminiscent of their namesakes, but have refined exterior panels that do almost without 20^Th Century chrome bling and with clever curves and short overhangs clearly designed to suggest, and probably provide, off-road capability.

They appear to be on the large side of the midsize pickup and SUV classes, similar to the electric Rivian R1T and R1S.

More: There's a lot to love about the VW ID Buzz 2025 electric van, but not its battery range

More: 2025 Rivian R1S SUV saves weight, increases range and features

Robust technology for off-road use

Both vehicles will use a new body-on-frame architecture designed specifically for Scout. This type of basic structure, often used on pickup trucks, is associated with workhorse performance and off-road capability.

The vehicles also feature front and rear limited-slip differentials, mechanical components that help maintain traction even in the most difficult conditions.

Other stats include multiple suspension options, more than 12 inches of ground clearance, the ability to traverse 3 feet of water, and up to 35-inch tires.

The vehicles will have all-wheel drive and an electric motor on each axle.

3.5 seconds 0-60, plus real switches and dials

Scout doesn't say how much horsepower they'll develop, but it promises nearly 1,000 pound-feet of torque and 0-60 mph acceleration in just 3.5 seconds.

The Terra pickup has a 5.5-foot bed with one 240V and two 120V outlets. The Traveler SUV is equipped with a horizontally split tailgate to prevent cargo from rolling out and provide protection from the elements.

There will be a glass roof with electric sun protection and an electrically foldable fabric “cabana roof”.

“There are of course challenges for a new brand, but that’s what a lot of people are excited about,” Waatti said.

The interior also features traditional physical switches and dials for many functions, as well as a large touchscreen.

The Scouts will feature a “zonal” electrical architecture that reduces the vehicle’s weight and complexity. This sounds a lot like the widely praised Rivian system, which VW recently agreed to use in a multi-billion dollar deal.

Scout will sell the vehicles directly to customers without a traditional dealer network. This has bitterly disappointed VW dealers, but the automaker promises a single app, login and password for most aspects of purchasing, service and repairs. The brand will have physical showrooms and service centers, but Scout says 80% of repairs can be completed on site.

Buyers can reserve a Scout here for a $100 refund.

Contact Mark Phelan: 313-222-6731 or [email protected]. Follow him on Twitter @mark_phelan. Read more at Cars and sign up for our Cars newsletter. Become a subscriber.

VW is making a billion-dollar bet that its electric vehicles can revive this failing SUV brand

ByVanessa

Scout Terra Pickup at a glance

Available for $50,000 and with a range of 350 miles?

Scout Traveler SUV at a glance

Similar, but not the same

Robust technology for off-road use

3.5 seconds 0-60, plus real switches and dials

By Vanessa

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