logo
Everything you need to know about Scout, VW's new 4x4 brand

Everything you need to know about Scout, VW's new 4x4 brand

Auto Car8 hours ago

Terra pick-up and Traveler SUV will form the new Scout EV line-up
Close
It would be easy to dismiss Scout Motors as yet another retro revival, a way of trying to attach some emotion to new electric vehicles by sticking a nostalgic logo on the bonnet.
Or even as just another new Volkswagen Group sub-brand designed to protect the conglomerate's share in the tough North American market.
Dig beneath the surface, though, and Scout is far more interesting – even if it isn't a brand too well known to UK readers, and one that, for now, won't be sold here.
For one thing, what's not to love about a retro-styled Jeep Wrangler rival? For another, the unusual set-up of Scout could have a significant influence on the future development processes of one of the world's biggest car firms.
Scout Motors isn't technically a Volkswagen Group brand: it's an independent stand-alone company based in the US but owned by the VW Group.
While Scott Keogh, boss of Volkswagen USA, also serves as CEO of Scout, it otherwise has its own staff and facilities. It is, in effect, a start-up created purely to make a new line of highly capable off-road EVs.
'The intent is to combine an American start-up – speed, innovation, ingenuity, adaptability – with the backing, scale and money of one of the world's leading manufacturers,' explains Ryan Decker, Scout's strategy boss (and employee number one). 'Nobody has really done that before.'
But this is an electric vehicle start-up housed in some nostalgic wrapping. A quick history lesson may be in order first because, despite its name, the original International Scout was very much an American machine.
It was developed by International Harvester, a longtime US manufacturer of agricultural and construction vehicles that in the early 1900s expanded into light trucks and pick-ups.
With the Jeep CJ gaining popularity in the 1950s, the Indiana firm decided to develop its own four-wheel-drive recreational vehicle.
The Scout 80 arrived in 1961 and was sold in various forms across two model generations until 1980. Even if the name isn't that familiar, chances are the model's styling would offer a familiar ring of Americana.
International Harvester slipped into decline in the 1980s, with its various divisions sold off. The truck and engine division was eventually rebranded as Navistar, and in 2021 it was bought by Traton, the VW Group's heavy commercial vehicle arm. That also gave VW the rights to the Scout model name.
Here's where it comes full circle: Volkswagen USA spotted the incredible popularity of the Jeep Wrangler and retro-infused off-roaders such as the revived Ford Bronco, and it wanted a piece of the action.
So in 2022 it decided to create its own start-up to produce one – and it just so happened the company now owned a brand with its own rich heritage.
'To be a start-up, but to have the heritage and legacy of a really cool brand that has a passionate fanbase and can evoke nostalgic memories, is really unusual,' says Decker.
And while it's been 45 years since a Scout last rolled off the production line, he insists the name is still known to US buyers.
'Some guy came up to me earlier today and told me his grandfather had a Scout they used to go on fishing trips in,' continues Decker. 'Having that as your starting place to build a brand from, how special is that?'
Last year Scout revealed two concept models: the Terra pick-up and the Traveler SUV (named after old Scout variants). Few details have yet been divulged, but there's talk of 1000lb ft and 350 miles of range, rising to 500 miles for the range-extender, and 0-60mph times under 3.5sec.
This is where Scout really diverges from VW Group models: they won't be built on a shared EV architecture, such as the now well-established MEB.
Instead, if you want to offer genuine off-road ability with the chops to take on a Wrangler on the trails, you will need a ladder-on-frame chassis – and, as Scout technical chief Burkhard Huhnke notes, 'there's no body-on-frame platform in the entire Volkswagen Group – so we have to start from scratch'.
Huhnke's appointment as technical boss encapsulates Scout's ethos: he has spent much of his career at the Volkswagen Group but was most recently technical chief at the now-defunct EV start-up Fisker. The brief he was given was simple, he says: 'The target is to become the benchmark in the off-road segment.'
To do that, the new Scout vehicles won't just be styled like the original. 'The Scout was a working horse in the past,' says Huhnke. "'It was the eight-days-a-week vehicle that could go off road but you could also do your daily business in. 'Off-road capability means it needs to be very different.
It's very simple: I get targets from an engineering perspective. We're focused on ability, on approach angles, the torque, weight distribution, everything. We're working on an e-beam and a special axle design.
We have 35in wheels. You have to have the sway bar disconnect. But we can combine the tradition of an off-road car with the innovations of an electric vehicle, and we can see a real sweet spot.'
Scout vehicles will be offered with electric or range-extender powertrains. They will be 'software-defined vehicles', designed around advanced computer systems that allow for over-the-air updates and the like. Huhnke describes it as 'heritage combined with innovation'.
That innovation will be seen in both the pure-electric powertrain and the range-extender variant that Scout is working on. Huhnke is proud that the latter – which drives the wheels with an electric motor but features a small combustion engine used to charge the battery – is the firm's own development and intellectual property.
He says: 'We're not a guinea pig for the Volkswagen Group to try this out; it's where we see our biggest opportunity.'
It's about that go-anywhere, off-road brief, and providing functionality in remote places where EV charging infrastructure might not be the best.
'We are customer-centric and listen to their concerns,' adds Huhnke. 'People loved the concept and the BEV platform, but the feedback led us to a range-extender. It's like carrying a charging station with you.'
Huhnke is also excited by the potential that an electric vehicle powertrain, with its instant power, torque vectoring and even weight distribution, has for an off-roader.
Software development will also be key, and it's notable Huhnke started his automotive career in software and electronics. For that side, the VW Group's recent tie-up with software-focused EV firm Rivian will be a major boost.
The joint venture between the two companies is centred on the development of a new zonal software architecture, and Huhnke says that 'Scout will be one of the first brands' in the VW Group empire to use it: 'It will be the most modern architecture, so we'll have full connectivity to the cloud for diagnostics, predictive maintenance and new functions to keep the car fresh.'
While Scout has shown concepts of its first two models, production versions are unlikely to appear until 2027 or 2028. Before then, the firm needs to finish development, while construction is also under way on a dedicated US factory in Georgia.
Needless to say, not many automotive start-ups can invest in a vast $2 billion (£1.6bn) facility that could employ around 4000 people and produce 200,000 vehicles a year.
Aside from the need to finish building that factory, it's a rapid cycle for a new start-up to launch products in, especially given the huge technical demands on off-roaders. 'Being a start-up means we can focus,' says Huhnke, 'and we are laser-focused on two products.
'I don't want to judge traditional car manufacturers, but we can focus on our first bullets without distraction. And by using digital technology and digital twins [testing simulated versions of cars], we can speed up the process.'
Conversely, unlike some start-ups with a limited pool of investment, Scout has the luxury of time. Huhnke adds: 'Sometimes you can see start-ups that have to push the product because of cash flow, but we can take time to get it right before it goes to the customer. We can do full-speed development and testing now and really work on the architecture and ability.'
Scout won't just work on the models for the next few years, though: there's also a brand to build. Decker describes that process as 'building a community', adding: 'We want to nurture existing Scout fans out there. But we want to make new fans as well.'
While he won't be drawn on reservations to date, Decker says the firm is 'happy with where we are' – with the Traveler SUV making up the bulk of buyer interest. He says the focus is on ensuring an ongoing dialogue with the people who have signed up, adding: 'We won't treat them like a marketing database.'
Similarly, Decker won't give specifics about any sales or growth ambitions for Scout, but he notes 'the two products we'll launch will cover more than 40% of the US market in terms of revenue and profit pools'.
Pricing is expected to start from around $50,000 (£40,000). But beyond a new Jeep rival for the US market, what about that bigger picture?
While both Huhnke and Decker insist Scout was conceived purely to fill a business opportunity, its unique set-up and technology could provide lessons and hardware for its Volkswagen parent.
'You never get money for free,' laughs Huhnke. 'Efficiency is key. I've taken the challenge to become a benchmark R&D organisation in the world, from a size and cost perspective. That is an interesting challenge appreciated by our sponsors as well. Of course, we are under observation.'
There are already reports that both Volkswagen and Audi are interested in Scout's platform for their own off-roaders, along with hints that the new Scout factory could be used to produce models for other brands while the marque is ramped up.
It's certainly an intriguing prospect, and Scout is worth watching because of how unusual it is as a start-up backed by a global car giant.
'You have a bunch of incumbent firms that are 100-plus years old with millions of loyal customers, but they also have a lot of complexity with lots of cars, powertrains and factories,' says Decker.
'Complexity is a challenge to growing a business. On the other hand, you have pure-play start-ups, who can react quicker, but they bring lots of questions.
"Will they have success? Will they go bankrupt? Can they service your car?
'If you can take the scale offered by an incumbent and mix it with the enthusiasm of a start-up, think what a superpower that is.'
Join our WhatsApp community and be the first to read about the latest news and reviews wowing the car world. Our community is the best, easiest and most direct place to tap into the minds of Autocar, and if you join you'll also be treated to unique WhatsApp content. You can leave at any time after joining - check our full privacy policy here.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

One of America's most iconic beach towns welcomes 1,100 new homes
One of America's most iconic beach towns welcomes 1,100 new homes

Daily Mail​

time44 minutes ago

  • Daily Mail​

One of America's most iconic beach towns welcomes 1,100 new homes

Affordable housing units are set to break ground close to one of America's most iconic beaches. New York City officials are touting a new housing project just blocks away from Coney Island's boardwalk entrances. The neighborhood, which hangs on the southern tip of Brooklyn, offers a dose of chaos and nostalgia. A scent of fried dough hangs in the air, wooden roller coasters rattle overhead, and sunburned crowds shuffle between jam-packed beaches and hot dog stands. But not everyone is excited about the development. 'People say, "Don't get a heart attack on Fourth of July because it'll take two hours for ambulance to come to your house,"' Angela Kravtchenko, a vice chair of the local land use committee, told Gothamist. Nevertheless, city officials are touting the upcoming construction site as a win for affordability in a city battling a housing price crisis. The development will include 1,100 units of housing, including 720 affordable apartments. In one building, the average price for a one-bedroom will be around $1,800 a month, a steep discount compared to the rest of Brooklyn. In July, new renters in the borough signed leases that pushed the median rent over $2,800 a month for a 545-square-foot apartment. Nearby Coney Island homes are even pricier, with average monthly rent hovering above $3,200. Coney Island's newest housing is part of Mayor Eric Adams' sweeping plan to rewire New York's outdated zoning laws called 'City of Yes.' The city's top politician has been sifting through bureaucratic red tape to build housing, open small businesses, and install green tech like solar panels. For years, housing advocates have warned that demand keeps climbing while new apartment construction lags behind. The Adams administration says it's answering that call — with what it touts as two straight years of record-breaking homebuilding. Still, not everyone's convinced. The boardwalk is another popular tourist destination - nearby residents worry that increasing population density and tourism could be a toxic mix Drivers worry that the new development will clog streets in a neighborhood already buckling under traffic. It's the kind of issue the city has tried to tackle with tolling initiatives — most famously, congestion pricing in lower Manhattan. That plan slaps a $9 toll on cars entering below Central Park during peak hours. Officials say it's raising funds for public transit, reducing pollution, and clearing a path for emergency vehicles. But the system doesn't extend to Brooklyn. Also, environmental activists are worried that the area is increasingly at risk for sea-level rise. Hofstra University conducted a land survey that found most of Coney Island is expected to flood more frequently in the coming decade. Despite the backlash, the Mayor's office is charging ahead with the Coney Island project. Housing projects like this one are expected to feature prominently in Adams' re-election pitch. In the meantime, hot dog–loving future residents might want to prep their stomachs. They could soon be living steps away from Nathan's — and might compete in the chain's famous hot dog eating contest.

Ominous sign house prices are poised to crash as stunning number of homeowners underwater
Ominous sign house prices are poised to crash as stunning number of homeowners underwater

Daily Mail​

time44 minutes ago

  • Daily Mail​

Ominous sign house prices are poised to crash as stunning number of homeowners underwater

A massive amount of US home sellers are at risk of selling at a loss in the current housing market. One in six of today's US home sellers are likely to sell their property for less than they originally paid — up sharply from just 4.4 percent a year ago, reports Redfin. While the risk of selling at a loss varies widely by location, the national increase marks a significant shift from last year's market conditions. In San Francisco, for instance, nearly 20 percent of sellers are at risk of losing money, but virtually no one who sells in Providence, RI, will see a loss. The risk also depends heavily on the type of home. Condos are much more likely to be at risk of selling at a loss than standalone homes or townhouses. Redfin's data shows that nearly one in four condos are at risk of selling below their purchase price—and that number climbs to nearly 30 percent for condos bought after the pandemic boom. 'We are seeing the biggest price drops in the condo market,' said Redfin agent Andy Potarf. 'I had a seller who bought a condo for $570,000 in 2021 and it just sold for $525,000 last week. Sellers who have to sell are willing to take a bigger hit to get the deal done.' Potarf added that condo sellers are in a particularly tough position because many face restrictions—from HOAs or local authorities—on how they can lease their properties. 'A lot of condo sellers have a choice to make: stay put, or take a loss,' he said. For sellers who bought single-family homes after the pandemic, 16.4 percent of sellers are at risk of selling at a loss in today's market. Post-pandemic buyers paid high prices due to intense competition and record-low mortgage rates that created a buying frenzy. Bidding wars were common, and many homes sold for well above list price. 'Current sellers who bought their home after mid-2022 may have overextended themselves, thinking that prices were going to keep rising at similar rates,' said Redfin economist Asad Khan. ' 'Prices have kept ticking up since then, but at a slower pace—and now prices have started to fall in some parts of the country, especially in the Sun Belt. 'That means sellers are in a position where they may need to choose between accepting a lower price, or taking the home off the market.' Those who bought during the pandemic will see 9 percent of sellers take a loss. For those who bought homes before the pandemic, only 1.8 percent will take a loss. The Redfin analysis looked at active listings on the MLS in May, and predicted how much a home is likely to sell for based on the sale-to-list price ratio of the metro area where it is located. For example, if a listed home is priced at $500,000 in a metro where the sale-to-list price ratio is 95 percent (where homes sell on average for 5 percent under the original list price), they predict that the home will sell for $475,000. Next, Redfin compared the expected sale price to what the seller originally paid for the home. The report found that many would-be sellers facing a financial loss will simply wait until they find a buyer willing to pay the asking price, while others may take their home off the market and continue to live in it or rent it out. In the early 2010s, following the global financial crisis, roughly half of for-sale homes were at risk of selling at a loss. Even prior to the pandemic, in early 2020, around 10 percent of for-sale homes were at risk of selling for less than their purchase price. Redfin senior economist Asad Khan said the sellers facing a loss today is good news for buyers. 'We are seeing more opportunities for buyers to pay a little less than they would have just a year or two ago,' he said. 'That's because sellers with significant equity in their homes—and therefore at no risk of selling at a loss—are more willing to be flexible on price. 'That's a meaningful shift for anyone who's been watching and waiting for prices to come down, especially first-time homebuyers.' Khan said that the longer someone has owned their home, the more likely they are to come out ahead. 'But that's little comfort for those who bought more recently and may be facing a loss,' said Khan. 'Not every homeowner is listing because they want to—some are listing because they have to. 'In those cases, it's important to list at a realistic price for the market and be prepared to adjust depending on buyer interest.' Redfin agents in some parts of the country report that some sellers who don't need to move immediately have already opted to de-list their home. 'A lot of sellers are taking their home off the market rather than reducing their price, with the idea of listing it again next year,' said Aditi Jain, a Redfin agent in Boston. 'They're not motivated by making money the way they would have been two or three years ago because there's not as much money to make. 'Another trend with sellers is they're accepting offers instantly. If they get one solid offer, they're signing the contract, cancelling other tours and open houses, and trying to close the deal as soon as possible.' Florida in particular has homes for sale at rock bottom prices. With a surplus of listings flooding the market, soaring HOA fees and sky-high insurance rates, owners just can't unload their homes so they are slashing prices. One two-bedroom, two-bathroom condo in the Hunters Run community of Boynton Beach, complete with a pool and a gym, was purchased in 2002 for $91,000. It's now going for just $1,000. The HOA fees are a whopping $1,503, but for a $1,000 home, the buyer still gets a deal. Plus, with no mortgage, a buyer would eliminate that bill, too. Residency in the neighborhood comes with an amenities-filled community, including three championship 18-hole golf courses, tennis and pickle ball courts, six dining venues, multiple pools, a fitness center, a spa, a salon and monthly entertainment. Another condo in the area that sold for $29,000 in 2015 is now listed at $9,500 - that's after the original $19,000 price tag was slashed in half.

Surprising group are living in fear as they struggle to get hired despite strong job market
Surprising group are living in fear as they struggle to get hired despite strong job market

Daily Mail​

time44 minutes ago

  • Daily Mail​

Surprising group are living in fear as they struggle to get hired despite strong job market

New graduates are struggling to find work despite recent data indicating a steady job market. For those graduating college it is the most difficult time in a decade to get that first foot on the career ladder, according to the latest figures. Young Americans are complaining that employers want years of experience even for entry level positions. Others are saying that they are having to apply for over 60 jobs before finally landing a tentative position. Overall national unemployment remains reasonably low at 4 percent, but this rises to 6.6 percent for new college graduates, Labor Department numbers show. The figures show a rise from the 6 percent unemployment rate for recent graduates the same time a year ago. It is part of a wider trend that has seen entry-level hiring fall by a staggering 17 percent since April 2019, according to data from LinkedIn. The bad news for new graduates comes despite a stronger-than-expected jobs report earlier this month which indicated that the labor market was holding steady amid the economic turbulence caused by President Donald Trump's tariffs. The economy added 139,000 jobs in May, above the Dow Jones estimate for 125,000. But despite the better than expected numbers, it was still a retreat in job growth from April, signaling remaining uncertainty about where the US economy is headed. Although young graduates tend to have a higher unemployment rate than those who have been in the workforce longer, the gap is only widening. The employment conditions for recent college graduates have 'deteriorated noticeably' in the first quarter of the year, according to a recent report from the Federal Reserve Bank of New York. This included college graduates aged 22 to 27 who have been in the workforce slightly longer. Unemployment for this group averaged 5.8 percent in the first three months of the year. That is the widest gap between young graduates and the broader population in 35 years, according to the study. Economists are blaming the general slowdown in hiring that is hitting new graduates hardest because layoffs for those already employed have remained low. This means it is harder for those without work to find it as companies look to tighten their belts in the face of economic headwinds. 'Businesses are hunkering down, and that creates a challenge for young workers entering the labor market for the first time,' Cory Stahle, an economist at jobs site Indeed, told the Wall Street Journal. Employers are less willing to take a punt on hires with less experience and thinner skill sets at the moment, Stahle explained. 'I'll think, "I could be good at this, but I haven't been given a shot yet,"' recent graduate Kirby Child told the Journal about her job search struggles. Child said one of the biggest barriers is that employers now want years of experience even for entry level positions. 'I don't have those three to five years of experience, and it feels really hard to get that,' the 22-year-old lamented. Zara Anwar, who graduated with Child from Lehigh University this year said she has applied for over 60 jobs before finally landing a position. However, her employer has pushed back her start date more than once. 'I worry for myself. I can only hope my job actually does start in August, but I truly don't know,' the cognitive science graduate told the publication. Guy Berger, director of economic research at the Burning Glass Institute think tank, agreed that a hiring slowdown is the biggest factor making it hard for graduates to find work. The situation could be even worse than the statistics let on since most of this year's college and high-school graduates are not yet registered in the unemployment statistics yet. The national unemployment level also managed to remain low in May because fewer people were registered in the workforce. The work habits of Gen Z — those born between 1997 and 2012 — are increasingly under scrutiny. Bosses are firing Gen Z in record time, a recent study revealed.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store