Volkswagen’s New Subsidiary, Scout Motors, Aims to Revive the Iconic American SUV Brand with All-electric Off-road Capable Vehicles
Volkswagen (VW), a leading automobile manufacturer, took an unconventional step in 2022 to relaunch the Scout SUV brand as an entirely new subsidiary company. This move underscores VW’s commitment and importance of this project in the United States market.
Scout Motors, a subsidiary of Volkswagen Group, is poised to introduce a new lineup of all-electric off-road capable SUVs. This initiative comes with VW’s strong belief that the Scout brand, which was one of the pioneers in the US SUV market and is now a collectible, will resonate with the new generation of American car buyers.
Oliver Blume, Volkswagen Group’s CEO, acknowledged the significance of the project and stated that it lays the foundation for an electric SUV and pickup brand in the lucrative US market.
While Scout could have been introduced as a sub-brand under Volkswagen, VW opted to establish it as an independent entity. The move was justified by Erin Keating, an industry analyst with Cox Automotive, who observed that “it’s a unique decision to make but not one that seems too crazy to me.”
Scout Motors’ CEO, Scott Keogh, has already taken a competitive stance against established SUV brands. According to Keogh, “the entire SUV market is an imitation of Scout,” and competitors took the name and created synonyms for it.
The original Scout SUVs and trucks were produced by International Harvester in the 1960s and ’70s. VW acquired the trademark for the defunct brand when it purchased Navistar, a successor company to International Harvester, in 2021. Scout Motors was officially announced the following year.
In the US market, Volkswagen Group holds a 5% market share, with the mainstream Volkswagen brand accounting for approximately half of it. The remaining market share comes from Audi, Porsche, Bentley, and Lamborghini. VW executives frequently refer to the North American market as an untapped potential.
To tap into this potential, Scout Motors could play a significant role in attracting new customers and retaining existing ones by offering electric vehicles that weren’t previously available from the Volkswagen brand. Dave Mondragon, a former Ford executive turned industry analyst at S&P Global Mobility, emphasized that “it’s about attracting new customers to your brand who wouldn’t have shopped the brand before and retaining customers already in your fold.”
It is still unknown how Scout’s vehicles will be sold in the US. Scout Motors has yet to reveal whether they will be available through Volkswagen dealers, an entirely separate dealer network, or directly to consumers as some startups like Rivian and Tesla do.
Despite being owned by one of the world’s largest automakers, Keogh insists that Scout is a startup and claims that it offers flexibility to make necessary pivots. The subsidiary’s separation from VW also opens up potential opportunities for strategic partnerships, investments, and even an Initial Public Offering (IPO).
Scout Motors is currently hiring for various positions across the organization, from human resources to manufacturing and engineering. The company is also investing $2 billion in its own factory located in Blythewood, South Carolina, which provides access to an extensive network of suppliers and hosts a design center in Novi, Michigan.
The Scout EVs will blend nostalgia with modern technology while maintaining all-electric capabilities. So far, the company has only revealed vague silhouette images of the SUV and truck models, which have received positive feedback from test audiences.
Despite concerns regarding battery costs and charging infrastructure, Keogh remains optimistic about the EV market. Volkswagen is actively investing in EV technology through its battery plant in Canada and a battery engineering lab in Chattanooga, Tennessee. The charging company Electrify America, also owned by VW, is expanding its network to support EV adoption.
The Scout EVs are expected to hit the market in early 2026, priced around $45,000, and will compete directly with Tesla Model Y, Ford Mach-E, and Rivian’s new R2 SUV.
With VW’s proven ability to manage various brands and markets around the world, Keating believes that the company will make this venture successful. Despite the challenges, Volkswagen seems determined to bring back the beloved Scout brand and provide electric off-road vehicles that cater specifically to the American market.
