- Now that the VW brand ID4 electric crossover flopped Stateside, Volkswagen Group CEO Oliver Blume reveals his carmaker's revival of heritage off-road brand Scout, which died out in 1980 before Americans fell in love with the SUV, is the key to profitable growth in the country's EV market.
Volkswagen’s bid to conquer the U.S. market with its ID-branded electric vehicles has faltered. Now, the German automaker is pinning its hopes on reviving a long-defunct American brand.
Once aiming to double its U.S. market share to 10% with its ID lineup—only two of which are sold Stateside—VW is shifting gears. It now sees its upcoming Scout electric models as the key to profitable growth.
The full-size Traveler SUV and Terra pickup, both designed and built in the U.S., target two of the most lucrative auto segments, which together make up a third of all light vehicle sales and half of industry revenue. Scout Motors has already begun taking $100 reservation fees ahead of production in two years.
“It’s the largest profit pool where the most money can be made, and we haven’t been present there at all,” Volkswagen Group CEO Oliver Blume told Fortune on the sidelines of an event on Wednesday.
“When we decided to enter it, we opted against going with a traditional brand of the Volkswagen group, but to revive this American heritage name Scout that helped found the pickup segment.”
It would put VW in direct competition with Tesla’s Cybertruck and the R1T and R1S built by the German carmaker’s strategic partner, Rivian.
What are the origins of Scout?
Volkswagen acquired the Scout name when it took over truckmaker Navistar nearly four years ago, inheriting the dormant brand through its International subsidiary.
Originally launched in 1961, Scout was among the first true SUVs, rooted in International’s farming heritage. But production ended two decades later—just before the SUV boom—leaving the name unused.
VW’s strategy has precedent. Polaris, after failing to establish its own Victory brand in heavy cruisers, found success by acquiring Indian Motorcycles, Harley-Davidson’s only true U.S. rival with a built-in fan base.
The Scout revival marks VW’s shift toward region-specific models for the U.S., Europe, and China, moving away from its “world car” strategy. The ID.4, meant to be its global EV flagship—akin to the combustion-powered Tiguan—has struggled outside Europe.
ID4 falls out of top 10 list of bestselling EVs in U.S.
While it remains the brand’s bestselling EV, the ID4 has flopped both in China and Stateside with sales plummeting by more than half last year. It even failed to make the list of the top 10 bestselling EVs in the United States in 2024.
The ID Buzz exported from Germany, while critically a success, is too expensive, and new tariffs could increase its price tag even further. Meanwhile, Volkswagen doesn’t even bother offering its compact ID3 hatchback in the U.S., nor will next year’s upcoming €25,000 ID2 get the nod for a launch.
Less than 5% of the roughly 380,000 vehicles sold by the VW brand in the U.S. are electric, and Volkswagen as a group now no longer talks about overtaking Tesla as the leading manufacturer of EVs worldwide, a goal it had once set to achieve by 2025.
'We think we touched a nerve' with Scout, says CEO
The cooling EV market isn’t helping Volkswagen’s pivot. Growth has slowed, and if Trump succeeds in eliminating the $7,500 federal EV tax credit, it could further stall demand.
Tesla’s aggressive price cuts, led by CEO Elon Musk, have also hurt the market. By slashing prices, Musk not only pressured rivals but also tanked EV resale values, spooking potential buyers and souring commercial fleet customers like Hertz.
In China, VW has already lost its market lead to domestic rival BYD. The company hopes next month’s Shanghai auto show will mark a turnaround, with new EVs built on a China-specific platform, CMP, set to debut. Those models will start making an impact next year.
For Scout, the wait will be longer. Production isn’t expected until 2027, and delays remain a risk. Still, CEO Blume remains optimistic.
“We think we touched a nerve in America with these cars and we’re totally overwhelmed by the reservations we’ve gotten even though it will still be a while before they arrive,” he added.
