Volkswagen (VW) is a recurrent underperformer in the U.S., despite being the second-largest automaker globally. Its reputation only got worse after it admitted in 2015 that it had been violating the rules around diesel emissions, according to Axios.
It's a great opportunity for VW to regain the trust of Americans by introducing a new series of sporty electric pickups and SUVs under the revived Scout brand.
Currently, during a historic move to electric vehicles (EVs), VW sees a chance to reestablish contact with American consumers by providing EVs in the markets they care about most: pickup trucks and large SUVs.
VW Electric Truck and SUV Spinoff Scout
Scout, which formerly produced an off-road SUV to rival Jeep in the 1960s, has been revived as a brand that can thrive independently of VW in order to compete with the electric SUVs and trucks that are still a popular category in the U.S., as per The Verge.
Through a 2020 merger of its commercial trucking subsidiary Traton with Navistar, which the German automaker initially purchased a portion of in 2016, VW acquired the Scout brand.
VW is hoping that Scout will be the solution to increase its current 5% market share of EVs in the U.S. A quarter million electric off-road vehicles will be sold yearly under the Scout brand starting in 2026, according to a May report from VW Group, which is prepared to invest $1 billion on the new Scout brand.
The manufacturer encountered a road block this year when all of its EV products, including the ID.4 and Audi E-trons, sold out for the 2022 model year.
Read More: Volkswagen Faces Another Lawsuit Over Diesel Emissions, Missouri Joins 16 Other US States
Changes in the Leadership
The Verge mentioned that on Sept. 1, Scott Keogh, the current CEO of Volkswagen Group of America, will take over as the next CEO of Scout.
Meanwhile, VW's management team in Chattanooga, Tennessee, gave existing South American VW head Pablo Di Si full responsibility for all VW North American operations now that Keogh is in charge of Scout.
What Kind of Car Can We Expect From Scout
According to Barrons, the Scouts would compete with any other well-known vehicle that can be used for off-roading, such as a few Jeep models sold by Chrysler parent Stellantis, the electric F-150 created by Ford, or perhaps against a Ford Bronco when an electric one eventually gets made.
How Competitive Is the Truck Industry
Barrons also noted that VW needs to understand that it's hard to compete in the truck market. Even Toyota is aware of this.
Mid-2000s saw a significant push for the Toyota Tundra. Despite all of the automotive achievements, the Tundra never gained traction. At around 197,000 units, U.S. sales reached their peak in 2007. Toyota sold roughly 82,000 Tundras in 2021, fewer than half the number in 2020. In the previous year, Ford sold more than 726,000 F-series trucks.
As a rule of thumb, auto manufacturers will make less money with decreased volumes.
Related Article : Volkswagen Fans, Their EVs are Pretty Much Sold Out for the Year Already
