Volkswagen's Scout Motors sees higher demand for hybrid vehicles over pure EVs

Investing.com -- Scout Motors, the Volkswagen (ETR:VOWG_p ) AG-backed automaker specializing in electrified SUVs and pickup trucks, has seen a surge in demand for its gasoline-hybrid models over its pure electric vehicles.

Initially conceived as an all-electric brand, Scout introduced plug-in hybrid versions of its two models, the Traveler SUV and Terra pickup, in October, in response to slowing consumer interest in EVs in the U.S. These hybrid models are set to debut in 2027.

Scout's CEO, Scott Keogh, reported that reservations for the hybrid variants are now surpassing those for the pure EVs. Keogh attributes this trend to some American consumers' resistance to EVs and concerns about the availability of charging stations.

He stated in a Bloomberg TV interview on Tuesday with Ed Ludlow at CES, formerly known as the Consumer Electronics Show, in Las Vegas, that the hybrid models offer a solution to these challenges.

The hybrid technology employed by Scout is known as a range-extended electric vehicle (EREV), where the gasoline engine acts as an on-board generator to recharge the battery, rather than directly driving the wheels. This design allows Scout's hybrid models to travel over 500 miles before needing to refuel, compared to a 350-mile range for its pure-electric variants.

EREVs are gaining popularity in China, the world's largest EV market, and are set to make their American debut this year with the Ramcharger pickup truck from Stellantis NV (NYSE:STLA ), the parent company of Chrysler.

Volkswagen announced plans in 2022 to resurrect and electrify the classic American Scout brand, which was last sold in 1980. The German automaker secured rights to the Scout name when it acquired Navistar (NYSE:NAV ) in a deal finalized in 2021.

As part of its investment in Scout, Volkswagen is constructing a $2 billion factory in South Carolina. According to Keogh, this facility requires minimal modifications to accommodate the production of EREVs.

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Source: Investing.com