Volkswagen sets new 2025 outlook as company modifies future predictions

Volkswagen sets new 2025 outlook as company modifies future predictions

Volkswagen has announced a significant shift in its 2025 outlook, focusing on its electric vehicle (EV) division with the revival of the Scout brand. The company aims to challenge traditional truck markets with two new models, the Terra pickup and Traveler SUV, both designed to compete with established players like Ford's F-150 Lightning and Rivian's R1T. These vehicles promise genuine truck capability, with up to 500 miles of range, thanks to a gas range extender, and are priced under $60,000 .

The Scout brand, a subsidiary of Volkswagen, is set to enter production in 2027 at a new facility in Blythewood, South Carolina. The production site is part of Volkswagen’s $10 billion investment deal with the government, aiming for late 2027 start of production with both vehicles debuting in 2028 . The Terra truck offers over 10,000 pounds of towing capacity, while the Traveler SUV provides over 7,000 pounds of towing and nearly 2,000 pounds of payload.

One of the key strategies for Scout is its direct sales model, bypassing traditional dealerships. This approach is a departure from traditional automakers and aligns with companies like Tesla, Rivian, and Lucid. Scout Motors CEO Scott Keogh has doubled down on this model, stating that "If you look at 21st-century brands and what they're able to deliver, that's what they do. We can create the stores, and we can create the brand experience" . This decision has sparked legal action from dealers in Florida and California, who claim Scout has violated agreements that don't exist yet.

The vehicles will use LFP battery cells in range-extended models and NMC cells in fully electric versions. The Harvester range extender generates electricity from a gasoline engine, addressing concerns about charging infrastructure for traditional buyers . Volkswagen is betting that this strategy will capture truck buyers frustrated with traditional dealership experiences, assuming the courts do not force a change in course.

Volkswagen's new outlook underscores its commitment to the EV market and its belief in the direct sales model. The company is positioning itself to capture a significant share of the growing EV market, especially in the truck segment.