Volkswagen votes for the creation of a new car brand

Volkswagen’s massive investment in electrics is starting to pay off. But the group does not intend to stop there and new investment plans are currently under discussion.

This Thursday in Berlin, the group’s advisory board met to vote on the creation of a new brand in its own right intended to tackle the American market. The plan: to recover the name “Scout”, to create a brand around a pickup and a large electric SUV.

The rights to use the name “Scout” have already been recovered by Volkswagen in 2021. It is a historical reference to the International Harvester Scout, an off-roader produced between 1961 and 1980 in the United States. At the time, it was competing with Jeep.

Today, under the wing of Volkswagen, he would attack Ford, General Motors and especially Rivian. The underlying strategy is already known: to offer much more attractive models in terms of pricing.

As reported by Wall Street Journal, the price being considered would compete with Rivian and its R1T pickup. Johan de Nysschen, the boss of Volkswagen in the United States, cited his competitor and his desire to set himself “at a price of $40,000 instead of $70,000”.

Internal sources speak of production for 2026 and a capacity of 250,000 vehicles sold and delivered per year. Also, the chassis would be new, without sharing with Volkswagen. But until then, competing brands may offer electric pickups and SUVs at more attractive prices.

Because this year 2022 has already given the start of production of the long-awaited F150 Lightning at Ford, derived from the classic F150, the best-selling model in the United States for several years. General Motors and Tesla (with the Cybertruck) will arrive next year.

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Special context: Rivian in turmoil

The vote of the Volkswagen advisory board comes in a very particular context. Rivian, mentioned as a big competitor by its teams, suffered a significant depreciation of its stock market share while its quarterly results show a loss of 1.5 billion dollars.

Ford liquidated part of its investment (8 million shares, or 8% of its shares) the same day that the contracts of the first Rivian investors gave them the possibility of reselling their shares.

Rivian is therefore in turmoil and optimism is not looking good among investors in the face of new car brands. To support its launch, Volkswagen should inject at least a billion dollars into its new Scout brand as an initial contribution.

For now, the group’s activity already includes the registrations of Audi, Porsche, Lamborghini and Bentley. Scout would quickly take the lead in terms of volume, if the strategy succeeds.

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