Volkswagen's investment in reviving the Scout brand appears to be paying off, as early demand for the upcoming Terra pickup and Traveler SUV has been unexpectedly strong. The company has received over 150,000 reservations across both models, with a significant majority opting for extended-range electric vehicles (EREVs).
The EREV options, which combine a compact generator with a lithium-ion battery and electric motor, have resonated with customers wary of battery-only limits. This trend is being echoed by other major brands, including Ford, Hyundai, Kia, and Jeep, who are also preparing range-extender models of their own.
Despite costly overruns, production of the Terra and Traveler is scheduled to begin in 2027 at a plant in South Carolina. The initial investment was expected to be $2 billion, but the figure has now ballooned to $3 billion.
The Scout brand's gamble might just be worth it, as buyers are choosing the EREV models over pure electric variants. With over 85% of reservations going to extended-range options, it seems that customers value the flexibility and range offered by these vehicles.
This shift in demand could have significant implications for the automotive industry, particularly when it comes to the adoption of electric vehicles. As the market continues to evolve, it will be interesting to see how this trend plays out and whether other brands follow suit with their own EREV offerings.
The Scout brand's decision to launch both Terra and Traveler as extended-range electric vehicles appears to have struck a nerve with customers. This trend is likely to have significant implications for the automotive industry, particularly when it comes to the adoption of electric vehicles.
