- Analysts from UBS have questioned VW’s investments in Scout after inking a software deal with Rivian.
- Future EVs from VW will use Rivian’s software-defined vehicle platforms.
- Scout is working on both an electric pickup and an electric SUV.
Volkswagen says it remains committed to reviving the Scout brand despite recently inking a $5 billion deal with Rivian to develop next-generation electrical architecture and software technologies.
Last week, VW and Rivian formed a joint venture, allowing the German automaker to use Rivian’s existing software-defined vehicle platforms in its future EVs. The deal surprised many, particularly since Rivian currently builds an electric SUV and an electric pickup, the same type of vehicles Scout is developing.
Read: VW Throws Rivian A $5 Billion Lifeline, But Can They Stay Afloat?
In a recent note issued to investors, UBS analysts, including Patrick Hummer, noted there is “significant potential overlap with Rivian” and questioned “why VW is maintaining its €5 billion ($5.3 billion) investment in Scout.”
Plans for the Scout brand‘s revival were put in motion while VW was under the leadership of Herbert Diess, who pushed heavily for new and compelling EVs. Diess has been replaced in the top job by Oliver Blume, and VW doesn’t have the same over-enthusiastic desire for new EVs due to a recent slowdown in demand. Nevertheless, the car-making giant confirmed in a statement to Auto News that it remains committed to the Scout brand.
Both the SUV and pickup being developed by Scout will be underpinned by an off-road-focused architecture, and they are expected to feature boxy and rugged designs. VW’s deal with Rivian suggests it is reining in the ambitions of its in-house Cariad software division after numerous delays. It’s entirely possible that Scout’s two models could use Rivian software while being quite similar in size to the R1S and R1T. However, Scout’s models are expected to start in the $40,000 range, making them much cheaper than the Rivians. They will also ‘only’ pump out around 300 hp, while the flagship R1S and R1T have over 1,000 hp.
Scout’s models will be manufactured at a planned site in South Carolina. This facility will be able to build 200,000 vehicles annually, and it is possible that Audi could produce select models at the same plant.
Note: The independent illustrations by Josh Byrnes in this story are not endorsed by VW or Scout.
