Compared to the landscape just a few years ago, a wide variety of electric vehicles from various brands are available for consumers looking to wean themselves off of combustion engines for good.
From innovative and disruptive startups like Tesla (TSLA) to established automotive giants like General Motors (GM) and luxury brands like BMW (BMWYY) and Porsche, a wide variety of automakers provide a cornucopia of wheels that seem to offer an electric vehicle option for almost everyone.
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But even in a world with plenty of variety, some buyers are looking for something different, and some companies emerge to rightfully serve those customers.
Surprisingly, one of those companies is German automaker Volkswagen (VLKAF) , which has entered the electric off-road vehicle market with a rugged set of new vehicles backed by a nostalgic name.
Scout Motors
Meet the Scout EVs
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After two years of development, Volkwagen's Scout brand revealed concept models of its first two offerings on the evening of Oct. 24.
Dubbed the Traveler and the Terra, the new Scouts are a brand new foray into EVs that piggyback off of a name and image that triggers nostalgia for many loyal car enthusiasts.
Compared to contemporary "tough" EVs like Tesla's Cybertruck, Scout's two EVs — the Traveler SUV and the Terra pickup — are more akin to indestructible Nokia cellphones in a world full of iPhones. Unlike the touch screen-dominated spaces of modern cars, the vintage-inspired Scouts feature physical controls for essential functions, actual door handles, and a body-on-frame construction similar to SUVs and pickup trucks like Chevrolet's Silverados and Suburbans.
Like the International Harvester Scout that inspired its name and aura, the new Scout is built for the kind of off-roading you see in Jeep commercials. It features a solid rear axle and front and rear mechanical lockers for taking on tough off-road trails, as well as a powertrain that will deliver 1,000 pound-feet of torque to the wheels and a 3.5 second 0-60 mile per hour time.
In addition to purely electric models, Scout Motors president and CEO Scott Keogh noted during its reveal that the Traveler SUV and Terra pickup will also come in range-extended variants dubbed the "Harvester." In contrast to the fully electric variants, the Harvester models use a gas engine generator to boost its range from 350 electric miles to 500 miles of range.
“All of that great ability, all of that capability, all that recognition, nothing goes away when you get the range extender,” he said. “You still have the frunk, you still have all the packaging, and the battery will drive both of the axles; of course, the engine will power the battery. So this gives you a proper EV experience with, of course, the generator.”
What is a Scout anyway?
Volkswagen's Scout brand takes its name from the International Harvester Scout, a vehicle automotive historians see as the precursor to today's modern 4x4s. Produced from 1961 to 1980, the vehicle's boxy shape, off-road capabilities, and versatility have made it a cult classic among fans, including Democratic Vice Presidential Tim Walz.
His blue 1979 model is the VP hopeful's ongoing project. It has been featured in campaign videos alongside his aptly named rescue dog, Scout.
In 2021, VW acquired the successor of International Harvester, which granted them access to the Scout trademark, allowing it to establish the Scout brand in 2022.
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Scout's radical sales idea angers VW dealers
Unlike its Volkswagen owners, Scout will take a page out of Tesla's playbook to sell its cars, bypassing the traditional franchised dealer model to let the manufacturer operate their direct-to-consumer model through its retail spaces and service centers.
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"Scout Motors will establish a one-to-one relationship with its customers, rooted in trust and transparency, by selling and servicing Scout vehicles directly from Scout Motors. From reservations and vehicle sales to delivery and service, Scout Motors supports the consumer directly," it said in a statement.
"From the start, customers will know what they are paying and can expect full price transparency. Vehicle purchase transactions will be completed in minutes. The company will create a simple, seamless experience for Scout customers across all touchpoints."
Ever since Tesla led the wave, the direct-to-consumer model has been a touchy subject with franchise dealership owners, who often lean on state legislatures to enforce dealer franchise laws.
Even though Scout doesn't plan to sell the sub-$50,000 Scouts until 2027, the idea of establishment brands like Volkswagen toying around with such an idea adds more fuel to their rage and desperation.
In an April 2024 interview with Automotive News, Volkswagen dealer owner and Volkswagen National Dealer Advisory Council chairman Charlie Hall said dealers like himself would "beg for the opportunity" to display and sell Scout cars out of their showrooms. On April 15, the Automotive Trade Association Executives threatened legal action against Scout and VW in a full-page ad they took out in the print edition of AutoNews.
In a recent statement to AutoNews, National Automobile Dealers Association (NADA) CEO Mike Stanton said that Volkswagen and Scout's decision to go direct-to-consumer could land them in legal action.
“VW’s decision to attempt to sell Scout vehicles direct to consumers and compete with its U.S. dealer partners is disappointing and misguided, and it will be challenged,” he said. “Unfortunately, it’s also not terribly surprising, as VW AG CEO Oliver Blume and Scout CEO Scott Keogh have avoided engaging with or even responding to NADA for months.”
In a statement to TheStreet, a representative for Scout Motors said that "future customers are at the heart of every decision we make," and reiterated that it will be employing a direct-to-customer sales model. Additionally, they state that "Scout Motors exists and operates independently of Volkswagen Group of America and its dealers, just as Scout Motors exists independently of all other manufacturers and their respective dealers."
"Scout Motors does not have franchised dealers, now or in the past. Scout vehicles have never been sold through any brand, including the Volkswagen and Audi brands," Scout Motors said.
"In the future, Scout Motors will operate an independent and exclusive network of retail locations."
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