Volkswagen Group plans to revive the Scout off-road badge to grab a greater share of the booming U.S. light-truck market.
VW, one of the biggest global automakers, but with a relatively small U.S. sales footprint that has tilted toward an expanded light-truck lineup in recent years, plans to introduce a new Scout electric SUV and electric pickup, The Wall Street Journal reported late Tuesday.
VW’s senior management is expected to approve the plan on Wednesday, the paper said, citing people familiar with the meeting. Scout will operate as a separate unit of VW Group in the U.S. alongside the company’s other brands, the paper said.
VW is prepared to initially invest $1 billion in the Scout project, the Journal said, and would later seek other investors.
VW, which gained a following in the U.S. with the Microbus and Beetle, has struggled with how to enter the U.S. pickup market, long dominated by the Detroit 3. It also lacks a bonafide off-road SUV such as the Jeep Wrangler or Land Rover Defender.
VW Group purchased the Scout brand name when its Traton truck unit acquired Navistar International Corp in 2020. Navistar was created in 1985 when International Harvester, which owned the Scout brand, folded.
International Harvester discontinued the Scout line of trucks in 1980 — a decade before Ford introduced a light truck that would bring more momentum to the SUV market — the Explorer.
Light trucks, notably SUVs, pickups and crossovers, are booming and among the U.S. auto industry’s most profitable vehicles. General Motors has revived Hummer as an EV brand and Ford Motor Corp. has resurrected the Bronco badge to much early success. And a fierce battle is emerging as EV startups such as Rivian target the electric SUV and pickup market.
VW is targeting sales of up to 250,000 Scout-branded models annually in the U.S., the Journal reported, with output slated to begin in 2026.