By David Shepardson
(Reuters) -Volkswagen's Scout Motors unit on Thursday unveiled its concept electric SUV and truck and said it will offer extended-range versions that include a small gasoline engine.
The German automaker announced the brand in May 2022 as an EV-only standalone company, but Scout said on Thursday that it had listened to the concerns of some U.S. drivers about recharging abilities.
VW is building a $2 billion factory in South Carolina and expects to begin production of the new vehicles in 2027. The full EV versions will offer up to 350 miles (560 km) of range on a charge while the extended-range version will have 500 miles (800 km).
"It makes the platform future proof," Scout CEO Scott Keogh said, adding that the company can divide production between the variants based on demand.
The gas-powered engine will recharge the vehicle’s high-voltage battery, but will not have a direct connection to the wheels, the company said.
Like Tesla (NASDAQ:TSLA), Scout will forgo a traditional independent dealer network in favor of directly selling and servicing vehicles, and it pledged full price transparency and transactions that can be completed in minutes. Keogh expects Scout will have around three dozen U.S. retail centers when sales start, eventually rising to 100.
Scout will compete with growing EV SUV and truck segments that include Rivian (NASDAQ:RIVN), Tesla, General Motors (NYSE:GM) and Ford (NYSE:F).
Keogh said in a Reuters interview that Scout models are designed to feel like traditional vehicles with mechanical switches that are less futuristic than other EVs.
"They want real switches, they want a door handle they can move," Keogh said of American buyers. "It has that love and nostalgia from the '60s and '70s with the high-tech stuff."
The Scout Traveler SUV and Scout Terra pickup will start under $60,000. Scout, which will be able to produce 200,000 vehicles annually in South Carolina, is currently planning 65%-70% of production as SUVs versus pickups.
Keogh says the SUV is "kind of a Defender meets a Land Cruiser meets a Bronco" -- referencing three popular SUVs of Land Rover, Toyota (NYSE:TM) and Ford, respectively.
VW last sold a pickup in the United States in the early 1980s. Scout and Travelall vehicles made by International Harvester were forerunners in both function and style of the popular SUVs from Detroit's Big Three automakers such as the Bronco and GM's Chevrolet Suburban.