Volkswagen

Volkswagen is a German car manufacturer headquartered in Wolfsburg, Lower Saxony. It is the flagship brand of the Volkswagen Group, which is 2016 and 2017 was the world’s largest automaker by sales. The German Labour Front formed it in 1937, and it is most known for its distinctive Beetle. The company’s major market, accounting for 40% of sales and profits, is China. Volkswagen derives its name from the German term Volk, which means “people.”

The Volkswagen Group is planning to launch a new electric SUV and pickup truck brand in the United States. According to rumors, the Scout moniker will be revived for a new electric car brand that will provide a range of robust SUVs and trucks. This will be the first time the term has been used in the United States since International Harvester, now Navistar used it for an SUV in the 1960s and 1970s. The Scout name is purportedly owned by the Volkswagen Group in the United States through its Traton commercial vehicle division, which operates under the Navistar brand.

According to sources, the Volkswagen Group aims to operate the Scout brand as a standalone in the United States, alongside its existing brands Volkswagen, Audi, Porsche, Lamborghini, and Bentley. VW’s board of directors is scheduled to make a decision in the coming days, with plans to launch the new Scout-badged cars as early as 2026.

The Scout brand will strengthen VW’s position in the United States, where several other manufacturers, including Ford, GM, Tesla, and upstart Rivian, are planning or already developing electric pickup trucks. VW is avoiding the fiercely competitive full-size pickup market, which is controlled by Ford’s F-150, GMC Sierra, and Chevrolet Silverado. Instead, a C-segment truck, smaller and equivalent to the Ford Maverick, is being developed.

Given the popularity of SUVs and pickup trucks in the market, Volkswagen expects to sell up to 2,50,000 Scout-branded vehicles in the United States per year. According to reports, the business is considering opening a third North American production facility to build Scout-branded vehicles. According to reports, the business plans to develop a dedicated skateboard architecture for its new Scout line of off-road SUVs and pickup trucks.

The Group is apparently planning a $ 1 billion initial investment to prepare the project, with intentions to raise further funds from other investors. 

The trucks and pickups are projected to be similar in size to the VW Atlas and Amarok in the United States. 

While the brand will initially only be available in the United States, the firm is considering extending to other regions in the future.

The Scout moniker is currently used as a suffix on the VW Group’s line-up of more rugged-looking and off-road-focused Skoda automobiles. The Skoda Kodiaq Scout and the Octavia Scout estate are two notable examples. In the United States, the Skoda brand is now unavailable.

In which year does the company start producing new EVs?

According to individuals who asked not to be identified because they aren’t permitted to speak publicly about the project, the new brand, named after the classic International Harvester Scout, would begin producing the two EVs by 2026.

How much money Is VW Investing in North America?

In North America, Volkswagen will invest $7.1 billion and add 25 new electric vehicles. 

According to insiders, VW plans to invest an initial $100 million in the new company, with additional funding to follow. The initial cash will be used to establish the company’s structure, establish management, and begin hiring workers. According to sources, some future investments may come from outside sources and may not be confined to institutional investors. This could allow private equity or people to contribute to the initiative.

According to Scott Keogh, president, and CEO of Volkswagen Group of America, the German carmaker anticipates 55 percent of its U.S. vehicle sales to be entirely electric by 2030. In Europe, a 70 percent target for electric vehicles by 2030 has set. 

In North America, VW will begin to phase out its gasoline-powered models, to end combustion-engine vehicle sales early next decade.

According to Keogh, the ID.4 electric crossover will be built this year, and the business plans to sell it. In 2024, the Buzz electric microbus will be available in the United States. The corporation has yet to decide whether or not to construct the ID. North America is buzzing. 

VW will produce the ID.4 in Tennessee, while its Mexican plants in Puebla and Silao are being upgrad to begin producing electric vehicles, motors, and related components by the middle of the decade.

According to Keogh, the company also wants to expand battery production in the United States, where it has a joint venture with SK Innovation of South Korea.

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